From my understanding, they can buy up to 20 billion a week of toilet paper. But, they can't print Euros at will, so where does the money to buy up the bonds come from?
20 billion is not a small amount!
"Don't Panic..."
EurAnalysis Kindergarten 24 replies
DislikedOn that note, where is the money coming from in the ECB to buy up these toxic bonds?
From my understanding, they can buy up to 20 billion a week of toilet paper. But, they can't print Euros at will, so where does the money to buy up the bonds come from?
20 billion is not a small amount!Ignored
DislikedOn that note, where is the money coming from in the ECB to buy up these toxic bonds?
From my understanding, they can buy up to 20 billion a week of toilet paper. But, they can't print Euros at will, so where does the money to buy up the bonds come from?
20 billion is not a small amount!Ignored
DislikedThey print (type a few keystrokes on a computer) the money to buy the bonds. Then they tender off 1 week deposits to banks to bring the money back in. That keeps the money supply from expanding. But it's a hot potato game and sooner or later, the potato falls to the ground.
Yesterday the potato fell. The ECB has suspended its fine tuning operations. Now we have €207 billion of instant QEIgnored
DislikedThey print (type a few keystrokes on a computer) the money to buy the bonds. Then they tender off 1 week deposits to banks to bring the money back in. That keeps the money supply from expanding. But it's a hot potato game and sooner or later, the potato falls to the ground.
Yesterday the potato fell. The ECB has suspended its fine tuning operations. Now we have €207 billion of instant QEIgnored
Dislikedme, me,
10.40 Exchange of views with the President of the European Parliament
Tour-de-table before the meeting
(host broadcaster + photo/TV - Group C)
11.00 – 13.30 Working session
13.30 – 15.00 Working lunch
At the end Press conference by the President of the European Council
the meeting and the President of the European Commission
(Press room - press centre, level 00)Ignored
DislikedLast night and today, the EU leaders tried to fire a bazooka to save the Euro from its current insolvency crisis.
This is what happened...
http://www.youtube.com/watch?v=Cv4FIDJEm3QIgnored
DislikedShould be a good show today. Liquidity has been thin for weeks and will probably remain thin through the end of the years.Ignored
DislikedIgnored
11. Longer term reforms such as the ones set out above must be combined with immediate action to forcefully address current market tensions.
Immediate, forcefully. I just love these strong words without backgroung.
12. The European Financial Stability Facility (EFSF) leveraging will be rapidly deployed, through the two concrete options agreed upon by the Eurogroup on 29 November. We welcome the readiness of the ECB to act as an agent for the EFSF in its market operations.
Ok, rapidly deployed whatever. Question is. Who is going to leverage this? And if there is such an institution, how high shall be IR? I would go for 15% pa if you ask me.
13. We agree on an acceleration of the entry into force of the European Stability Mechanism (ESM) treaty. The Treaty will enter into force as soon as Member States representing 90 % of the capital commitments have ratified it. Our common objective is for the ESM to enter into force in July 2012.
Ok, I know Czech republic is small, but I am pretty sure we aint alone with objections agains using ESM as a bailout fund. This was not the purpose of this facility.-• the EFSF will remain active in financing programmes that have started until mid-2013 as provided for in the Framework Agreement; it will continue to ensure the financing of the ongoing programmes as needed;
Wtf? Did they consider to stop refinancig programmes or what? What a pointless statement.- we will reassess the adequacy of the overall ceiling of the EFSF/ESM of EUR 500 billion (USD 670 billion) in March 2012;
Could someone expand here? I dont get it. I get what ceiling of taxes means, but ceiling of fund?- during the phasing in of the paid-in capital, we stand ready to accelerate payments of capital in order to maintain a minimum 15% ratio between paid-in capital and the outstanding amount of ESM issuances and to ensure a combined effective lending capacity of EUR 500 billion;
Uh uh oh oh. Now I am starting to be afraid. Thats the unsuable ESM fond who is prepared to take our money pretty soon, isnt it?
• - euro area and other Member States will consider, and confirm within 10 days, the provision of additional resources for the IMF of up to EUR 200 billion (USD 270 billion), in the form of bilateral loans, to ensure that the IMF has adequate resources to deal with the crisis. We are looking forward to parallel contributions from the international community.
Consider and confirm. Omg what a fraud. And Memer states included. FO you European muppets!!! This is fault of EMU, not European Union.
T
DislikedHuh, pocketed a total of 346 pips on my longs over night, my TP was 1.3421, price went through it like a hot knife through butter, to quote a wise man
I'll stay on my hands for a while, enjoying my account back to 90% after a hit which took me to 20% two weeks ago.
Whata week!
Trade safe!Ignored