- Europe to start €1.14trn ‘easy money’ program on March 9 – ECB President (RT, March 5, 2015):
The European Central Bank will kick off its monthly €60 billion purchases of government bonds and private sector assets next Monday, said the head of the ECB Mario Draghi.
“Following up on our decisions of 22 January 2015, we will, on 9 March 2015, start purchasing euro-denominated public sector securities in the secondary market. We will also continue purchasing asset-backed securities and covered bonds, which we started last year,” Draghi said in a press-release published Thursday after a news conference in Cyprus.
The programme will last till September 2016, Draghi confirmed. The €1.14 trillion package is hoped to avert deflation and save the eurozone from a triple-dip recession. Continue reading »
Tags: ECB, Economy, EU, Europe, Global News, Mario Draghi
- “In The End Capital Controls Will Probably Have To Be Imposed” – Eurogroup Official (ZeroHedge, Feb 17, 2015):
With less than 24 hours until the ECB’s meeting at which Mario Draghi and company are set to decide if i) they will increase the current Greek emergency liquidity allotment from €65 billion as a result of the ongoing bank deposit run or ii) reduce – or even outright cancel it – to send Tsipras a message that the time for negotiations is over, Europe is no longer playing Mr. nice guy. In fact, judging by the latest report in Reuters, which may well be nothing but another planted trial balloon (in the aftermath of today’s latest Telegraph revelations one should read everything presented in the media, here certainly included, with a cape-size ship full of salt) Greece can kiss goodbye not only any a loan extension without a bailout “programme” resumption, but also any hope that tomorrow’s its ELA will be increased. Continue reading »
Tags: ECB, EU, Europe, Global News, Government, Greece, GREXIT, Mario Draghi, Politics
From the article:
“In short: anyone betting that tomorrow the ECB will extend the Greek last-ditch source of liquidity no questions asked, may want to not hold their breath. And once Greek ELA access is withdrawn, well… Cyprus was called a “blueprint” for a reason.”
- As Bank Run Accelerates, Greek Depositors Pray To Saint Mario (ZeroHedge, Feb 17, 2015):
As we have consistently shown over the past month, the battle between Greece and the Eurozone is all about leverage, and specifically who has more of it. Furthermore, as we laid it out previously, the best way to quantify this duel of leverage is through two easily observable metrics: the level of Eurozone risk asset prices (if Greek contagion fears were dominant, the Eurostoxx would be tumbling), and the pace of deposit outflows from Greek banks (if the Greeks fear the ECB is about to yank all money they would pull their cash from the bank, in the process forcing Tsipras and Varoufakis to the negotiating table willing to sign anything Europe throws at them).
Which is why in a Eurozone in which all price levels are now controlled by the ECB, it is not surprising that no amount of huffing and puffing has managed to derail the Stoxx or the Dax even briefly from their relentless surge to all-time highs. Continue reading »
Tags: Banking, ECB, Economy, EU, Europe, Global News, Government, Greece, Mario Draghi, Politics
- ECB Pulls The Trigger: Blocks Funding To Greece Via Debt Collateral – Full Statement (ZeroHedge, Feb 4, 2015):
Just what the market had hoped would not happen…
- *ECB SAYS IT LIFTS WAIVER ON GREEK GOVERNMENT DEBT AS COLLATERAL
- *ECB SAYS IT CAN’T ASSUME SUCCESSFUL CONCLUSION OF GREECE REVIEW
What this means simply is that since Greek banks are now unable to pledge Greek bonds as collateral and fund themselves, and liquidity is about to evaporate, the ECB has effectively just given a green light for Greek bank runs, as suddenly it has removed, both mathematically but worse politically, a key support pillar from underneath the already bailed out Greek banking system, (or merely a negotiating move to let Greece see just what kind of chaos this will create ahead of the big D-Day on Feb 25th when ELA could be withdrawn). Continue reading »
Tags: Banking, Bonds, Collapse, Debt, ECB, EU, Europe, Global News, Government, Greece, Mario Draghi, Politics
- How Capitalism Dies (Acing Man, Jan 27, 2015):
In the early 1970s, there were about 200,000 new US businesses created each year (net of closures). Now, the number is negative. Why are Americans getting poorer? Look no further. No new businesses (net). No new jobs (again net). No new wealth. Under Obama and Draghi, crony capitalism flourishes. Real capitalism dies.
Tags: Barack Obama, Collapse, Economy, EU, Europe, Fed, Federal Reserve, Global News, Government, Mario Draghi, Obama administration, Society, U.S.
ECB president Mario Draghi is presented with the Prussian spiked helment at Bild’s offices
- Bunch of Criminals! (The Automatic Earth, Jan 23, 2015):
I was going to start out saying Thursday was the saddest day in Europe in 50 years, or something like that, because of the insane and completely nonsensical largesse the ECB permits itself to launch, aimed at once again saving a banking system, but which will not only not help the European people, it will make things even much worse than they already are.
I’ve said many times that the EU in its present form should be dismantled tomorrow morning (even though it’s not the same tomorrow morning anymore), and if Draghi’s $1.1 million x million ‘stimulus’ should make anything clear, it’s that the dismantling gets more urgent by the day. Continue reading »
Tags: ECB, Economy, EU, Europe, Global News, Mario Draghi
- Bouncing Rubble (Alhambra Investment Partners, Jan 23, 2015):
The Keynesian revival that is currently underway in the backrooms and hallways of assorted world governments is being somewhat replicated in Europe this week. It is all predicated on the position that all previous forms of “stimulus” from the fiscal side were not the right size, composition or color for that matter and thus the lack of recovery can be attributed to the impurity of the Keynesian solutions. That is further augmented in especially the Krugman view of “austerity” which has supposedly undercut all the good deeds done by central banks.
Thursday’s press conference with Mario Draghi announcing the QE program ran dangerously into interfering with that Krugman view, while also keeping within the spirit of the “purity” argument. Toward the end of the question and answer session, the ECB’s chief was asked about hyperinflation, as if this latest balance sheet expansion might nudge Europe closer to Weimar. Continue reading »
Tags: Bonds, Debt, ECB, Economy, EU, Europe, Global News, Mario Draghi
- The Lunatics Are Running the Asylum: Draghi’s Money Printing Bazooka (Acting-Man, Jan 22, 2015):
Given that already surging money supply growth rates in the euro area are now bound to increase at an even stronger rate, economic activity as measured by aggregate statistics is bound to pick up eventually. It is always important to keep in mind though that quantitatively measurable “activity” as such is not telling us anything about its quality. The boom prior to the 2008 crisis was also characterized by a measurable increase in “activity”, but as it turned out, most of it was merely a complete waste of scarce capital.
There is no reason to assume that this time will be different. These boom-bust sequences will continue until the economy is structurally undermined to such an extent that monetary intervention cannot even create the illusory prosperity of a capital-consuming boom anymore.
The bankers applauding Draghi’s actions today will come to rue them tomorrow.
Tags: ECB, Economy, EU, Europe, Global News, Mario Draghi, Quantitative Easing
- Mario Draghi: Charlatan Of The Apparatchiks (David Stockman’s Contra Corner, Jan 22, 2015):
Well, he finally launched “whatever it takes” and that marks an inflection point. Mario Draghi has just proved that the servile apparatchiks who run the world’s major central banks will stop at nothing to appease the truculent gamblers they have unleashed in the casino. And that means there will eventually be a monumental crash landing because the bubble beneficiaries are now commanding the bubble makers.
There is not one rational reason why the ECB should be purchasing $1.24 trillion of existing sovereign bonds and other debt securities during the next 18 months. Forget all the ritual incantation emanating from the central bankers about fighting deflation and stimulating growth. The ECB has launched into a massive bond buying campaign for the sole purpose of redeeming Mario Draghi’s utterly foolish promise to make speculators stupendously rich by the simple act of buying now (and on huge repo leverage, too) what he guaranteed the ECB would be buying latter.
So today’s program amounts to a giant bailout in the form of a big fat central bank “bid” designed to prop up prices in the immense parking lot of French, Italian, Spanish, Portuguese etc. debt that has been accumulated by hedge funds, prop traders and other rank speculators since mid-2012. Never before have so few—-perhaps several thousand banks and funds—-been pleasured with so many hundreds of billions of ill-gotten gain. Robin Hood is spinning madly in his grave.
Continue reading »
Tags: Collapse, ECB, Economy, Europe, Global News, Government, Inflation, Mario Draghi, Politics
- What ECB QE Will Do For The World (In 1 Word & 1 Simple Chart) (ZeroHedge, Jan 22, 2015):
- *DRAGHI SAYS TODAY’S MEASURES WILL BE EFFECTIVE
- *DRAGHI SAYS TODAY’S MEASURES WILL BOLSTER INFLATION
- *DRAGHI CITES SIGNALING EFFECT ON INFLATION EXPECTATIONS
“Different this time?” or “Einsteinian Insanity”?
With The ECB set to announce a QE4EVA-esque bond-buying initiative within the next hour or two, we thought it worth looking at just what The Fed’s balance-sheet experiment did for inflation expectations (the key narrative that is driving Draghi’s decision) and economic growth (what every politician is demanding Draghi help with)…
The answer… Nothing!!
Tags: ECB, Economy, EU, Europe, Fed, Federal Reserve, Global News, Mario Draghi, Quantitative Easing, U.S.
- Mario Draghi Unveils €60 Billion Per Month QE Through September 2016 With Partial Risk-Sharing: Live Conference Webcast (ZeroHedge, Jan 22, 2015):
From “whatever it takes” to OMT to “discussing” bond purchases, with European interest rates at record (incomprehensible) lows (apart from Greece) and EURUSD at 11-year lows (down 25 handles in the last 8 months), Mario Draghi looks set to unleash interventionist ‘hell’ on the investing public in Europe with EUR50 billion (plus plus) of ECB QE per month for as long as it takes.
And then there’s this:
- *MERKEL SAYS DEBT CRISIS ‘MORE OR LESS UNDER CONTROL,’ NOT OVER
- *MERKEL SAYS ECB IS MAKING AN INDEPENDENT DECISION TODAY
Live Feed below (in case of error, here is a link to the source webcast): Continue reading »
Tags: Banking, ECB, Economy, EU, Europe, Global News, Government, Mario Draghi, Politics, Quantitative Easing
- Don’t Tell Germany Draghi Is About To Monetize 90% Of Bund Issuance (ZeroHedge, Dec 22, 2014):
The next time anyone is stupid enough to mention monetary policy “normalization”, either have them read this:
The Bank of Japan’s expansion of record stimulus today may see it buy every new bond the government issues.
The BOJ said it plans to buy 8 trillion to 12 trillion yen ($108 billion) of Japanese government bonds per month under stepped-up stimulus it announced today. That gives Governor Haruhiko Kuroda leeway to soak up the 10 trillion yen in new bonds that the Ministry of Finance sells in the market each month.
Translated: the BOJ will monetize 100% of all Japanese debt issuance (source).
… And this:
in Q1, we expect the ECB to announce a EUR500bn sovereign QE program and buy EMU government bonds according to each EMU country’s ECB capital key contribution. This implies that the ECB would purchase EUR130bn of German bonds, i.e., 90% of the 2015 gross issuance of German Bunds.
Translated: the ECB will monetize 90% of all German debt issuance (source).
Or just show them this chart. Continue reading »
Tags: Bonds, Debt, ECB, Economy, EU, Europe, Germany, Global News, Government, Mario Draghi, Politics
- PIMCO Paid Bill Gross & Mohamed El-Erian Over $500 MILLION Dollars In 2013 Bonuses
- It’s All Coming To An End, Bill Gross Warns (ZeroHedge, Dec 4, 2014):
Say what you want about Bill Gross, but the legendary bond investor is absolutely spot on in the following paragraph from his latest, December, investment outlook:
How could they? How could policymakers have allowed so much debt to be created in the first place, and then failed to regulate their own system accordingly? How could they have thought that money printing and debt creation could create wealth instead of just more and more debt? How could fiscal authorities have stood by and attempted to balance budgets as opposed to borrowing cheaply and investing the proceeds in infrastructure and innovation? It has been a nursery rhyme experience for sure, but more than likely without a fairytale ending.
Here is the full letter (link): Continue reading »
Tags: Bill Gross, Bonds, Debt, ECB, EU, Europe, Fed, Federal Reserve, Global News, Janet Yellen, Mario Draghi
- And The World’s Most Powerful Person For The Second Year In A Row Is… (ZeroHedge, Nov 6, 2014):
When it comes to the second coming of the cold war, things are not looking good for the leader of the “Free World”, because for the second year in a row, at least according to Forbes editors, the person whom they have chosen as the world’s most powerful in the world…
… is not the lame duck on the left.
From Forbes: Continue reading »
Tags: Angela Merkel, Barack Obama, Bill Gates, David Cameron, Global News, Janet Yellen, Larry Page, Mario Draghi, Pope Francis I, Sergey Brin, Vladimir Putin, Xi Jinping
- Why Tomorrow It Could Get Even Worse (ZeroHedge, Oct 13, 2014):
While today’s market dump was certainly dramatic, it was a function of the scant liquidity in the market (as we warned would be the case first thing) and outsized moves following last week’s mauling, not the result of any fundamental (or not so fundamental) news.
That could change tomorrow, and change for the worse, because as Barclays reminds us, tomorrow is when the European Court of Justice (ECJ) is scheduled to hear testimony on the ECB’s non-existent Outright Monetary Transactions program (OMT). Recall that the OMT is the imaginary (again: non-existent) byproduct of Draghi’s “whatever it takes” speech: a byproduct that was supposed to exist purely in the imaginary realm (as it was merely a verbal bluff, one which was never meant to be actually activated), and never actually take practical shape (hence, why the OMT’s legal term sheet still does not exist, over two years later).
Sadly for Draghi, and the entire Deus Ex theater that managed to send European peripheral bonds from record wides yields to record low, tomorrow it will attain some much dreaded shape.
And while a ruling on the legal questions forwarded by Germany’s Constitutional Court is not expected this year, the hearing and questions posed by EU judges may give some early insights into their views and to what extent they might share the view of the German court that, unless several restrictions are imposed, the OMT should be considered illegal under European law. Continue reading »
Tags: Banking, Bonds, Debt, ECB, Economy, EU, Europe, Germany, Global News, Law, Mario Draghi, OMT, Politics
- Draghi The Dictator: “Working With The Germans Is Impossible” (ZeroHedge, Oct 12, 2014):
The war of words between Europe’s unelected monetary-policy dictator Mario Draghi and Germany’s “but it’s us that pays for all this” Bundesbank has been gaining momentum since Jens Weidmann penned his Op-Ed slamming Draghi’s OMT ‘whatever it takes’ as “too close to state financing” in 2012. A week ago, Weidmann stepped up the rhetoric by claiming ECB policy is “hostage to politics” and has lost its indepdendence – warning Draghi’s dictatorial policies were leading Europe down a “dangerous path.” But now, as pressure grows from the Spanish (record unemployment, record bad debt, record low yields), Italian (record unemployment, record debt-to-GDP, record low yields) and French (record unemployment, treaty-busting-deficits, record low yields) for Draghi to monetize more assets, he has struck back in Focus magazine, blasting Weidmann is “impossible” to work with because the Germans “say no to everything.” Dis-union… Continue reading »
Tags: Bundesbank, ECB, Economy, EU, Europe, Germany, Global News, Government, Jens Weidmann, Mario Draghi, Politics
- Clearly Europe Has A Crushing Deflation Problem… Oh Wait (ZeroHedge, Oct 4, 2014):
When Mario Draghi set off on his latest quest to slay Europe’s deflation monster, after an endless array of failed alphabet soup programs to inject money into stock markets mysteriously failed to fix Europe’s insolvent economy riddled by record unemployment and trillions in non-performing loans, he clearly was guided by this latest Eurobarometer survey of Public Opinion in the European Union, in which virtually everyone across the board admitted that the most important issue facing the common folk in Europe is plunging prices and crushing deflation.
Oh wait… it says rising prices/inflation.
Well, that’s embarrassing. Please ignore everything we just said, because paradoxically to “fix” Europe, Mario Draghi is desperately trying to make Europe’s biggest problem even worse. Or not: surely this is just a case when the 6 members of the ECB’s executive board “know better” than some 330 million Europeans. Continue reading »
Tags: Deflation, ECB, Economy, EU, Europe, Global News, Inflation, Mario Draghi
- CEO Of Europe’s Largest Insurer Pops The Utopia Bubble: “Nothing Is Solved And Everybody Knows It” (ZeroHedge, July 11, 2014):
It’s one thing for a tinfoil fringe blog to repeat, month after month, that nothing in Europe has been fixed, that Draghi’s disastrous policies are merely concentraing and stockpiling even more unresolved problems – for now ignored courtesy of the gentle sprinkle of ZIRP, or rather NIRP “fairy dust” – and that just like Portugal showed panic can grip the entire continent literally overnight because everyone knows this. It is something entirely different for the CEO of Europe’s largest insurer to make the same statement.
When asking Allianz SE’s chief investment officer about the euro area’s sovereign debt woes, be prepared for an emphatic response.
“The fundamental problems are not solved and everybody knows it,” Maximilian Zimmerer said at Bloomberg LP’s London office. The “euro crisis is not over,” he said.
While extraordinary stimulus from the European Central Bank has encouraged investors to pile into the region’s government bonds this year, that’s not a sufficient remedy for Zimmerer, who oversees 556 billion euros ($757 billion) at Europe’s largest insurer. Countries are still building up their debt piles, and that’s storing up trouble for the future, he said.
Continue reading »
Tags: Allianz, Banking, Bonds, Bubble, Collapse, Debt, ECB, Economy, EU, Euro, Europe, Global News, Mario Draghi, Portugal
- Largest Austrian Bank Crashes After “Revealing” 40% Surge In Bad Debt Provisions, Record Loss (ZeroHedge, July 4, 2014):
Update: just as expected, the confidence-preservation brigade is quick on the scene:
- HUNGARY LOAN-REFUND LAW VIOLATES RULE OF LAW: BANK ASSOCIATION
- HUNGARY LOAN-REFUND LAW DAMAGES INVESTOR CONFIDENCE, BANKS SAY
Because clearly marking loans to fair value would crush investor confidence. And clearly investors are dumb enough not to realize that it is precisely by hiding what is beneath the surface, that they have zero confidence in the system.
* * *
Ever since 2012, when we first revealed that the biggest problem plaguing Europe’s financial sector is the $2 trillion+ in bad debt on the books of European banks (not our numbers, the IMF’s), it became clear that the only way Europe can avoid a complete financial meltdown coupled with currency disintegration, is if it can constantly keep rolling over said bad debt (obviously the only way to do that would be to create an epic debt bubble leading managers of other people’s money to do idiotic things like buy Spanish debt at 2.75%). This is why not only the BOJ launched its mega QE in 2013, but why Draghi also kicked in with NIRP a month ago: the logic – do anything and everything to reflate the biggest credit bubble possible as otherwise European banks will have no choice but to face up to their trillions in bad loans. Continue reading »
Tags: Austria, Banking, Collapse, ECB, Economy, Erste Bank, Global News, Mario Draghi, NIRP, Stock Market