Yesterday's rumor that global central banks may, just may, respond to a Greek exit from the Eurozone, which would send the world into tailspin sent stocks higher. Because without said rumor nobody, repeat nobody would possibly imagine that there could be a coordinated response to an event that would send global risk down over 20%. Today, it gets even dumber:
- ECB MAJORITY SAID TO OVERCOME CONCERN ON CUTTING DEPOSIT RATE.
- ECB POLICY MAKERS HAVE OVERCOME A KEY CONCERN ABOUT TAKING THE BECHMARK RATE BELOW 1%
At least yesterday the source was some discredited G-20 member. Now it appears that the media has a front-row seat to ECB deliberations. Fascinating. And what is even more fascinating is that the market continues to fall for these rumors "breaking news" and rumors time after time after time...
More from Bloomberg:
- Likelihood that such a move would also involve cutting rate the ECB pays banks on overnight deposits from 0.25% is no longer an obstacle for a majority of Governing Council
- NOTE: Deposit rate traditionally moves in tandem with benchmark; policy makers have been reluctant to take it to zero out of concern it would discourage interbank lending
And the kicker:
- A rate cut isn’t certain, the officials said
- ECB spokeswoman declines to comment
So... things may or may not happen depending on what happens? And this sends stock spiking?
Sigh