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  • Draghi’s New Era Blighted by Old Problems as ECB Finalizes QE

    From bloomberg.com

    Mario Draghi is leading the euro area into a new phase of monetary stimulus hampered by the same old political problems. While the European Central Bank president’s 1.1 trillion-euro ($1.2 trillion) bond-buying plan may be enough to skirt deflation, it can’t make governments play their part with structural reforms. That leaves him continuing to cajole politicians as he deals with the fallout from recurrent financial crises in weak economies. As the Governing Council meets in Nicosia to settle the details of an asset-purchase program that could start this week, the risk is that it’s simply delaying a day of ... (full story)

Yes, yes,....who is this guy, who is not elected, who runs the entire European economy & is given all the power to try to get an economic expansion similar to that of the U.S. (which is going to fail, BTW ;^)?

Former Goldman Sachs executive. Former Governor of the Italian central bank who bailed out MPS bank:

"... MPS was making very risky deals. Under his [Draghi's] leadership the Italian central bank provided to the stumbling MPS a loan secured with bonds of two billion Euros in October 2011 - yet neither the public nor the Italian parliament were informed by leadership at the Italian central bank that this loan was being provided to MPS. As a result of this secret salvage of the MPS, junk bonds ended up in the ownership of the Italian central bank. In return, the MPS received government bonds and now the Italian tax payers are paying for the debts plus interest...."

Well, okay, he is probably the savior of Europe's biggest banks, but what about the average guy? Screwed, essentially.

When are you Europeans going to wake up? Will it be too late?

I truly hope not.

Love you all!
The mind thinks, the heart knows...
Ever E. Man:

From your write-up I assume you are an American. Well, thanks for your concern on us Europeans but be assured we are more awake than you Americans!

Did you hear your Rep.-lead House is blocking the funding of your HOMELAND Dept. just to repeal your social security bill? Don't worry about us mate. We are ok here
Quoting Ojiego
Ever E. Man:

From your write-up I assume you are an American. Well, thanks for your concern on us Europeans but be assured we are more awake than you Americans!

Did you hear your Rep.-lead House is blocking the funding of your HOMELAND Dept. just to repeal your social security bill? Don't worry about us mate. We are ok here
I couldn't agree with you more! I have nothing but Love for the people of Europe & the people of America, as well.

My remarks have to do with the governments, which are both self-interested & self-serving. They claim they help the citizens, but do the opposite.

Sorry if that offends anyone. It's not my intention to offend by remarking about government machinations.

Best regards,
may all your trades be winners! ;^)
The mind thinks, the heart knows...
Social Security bill? You made that up, Right?
Quoting Ever E. Man
...is given all the power to try to get an economic expansion similar to that of the U.S. (which is going to fail, BTW ;^)?...
The remark about the expansion failing was aimed at the American economy, though I can see that it could be misinterpreted.

The global economy is uniformly trying to keep the party of the rich & the central banks going by flooding their economies with money that they can never pay back.

This creates huge inefficiencies that will have exactly the same effect as Japan's machinations.

The economy will stagnate while the economists, traders, banks, institutions continue to grasp at every straw to justify their baseless optimism.

The real problem is a view of the global economy that is fundamentally, structurally flawed.

You simply can't put all the money at the top of the feeding chain & expect the economy to thrive. It's just too inefficient, & the former U.S.S.R clearly showed what happens when you do.

It's a slow motion train wreck!

Those who suffer the most are usually not the ones that make the policies that create the problems.

That's life!
The mind thinks, the heart knows...
Quoting Ojiego
Ever E. Man:

From your write-up I assume you are an American. Well, thanks for your concern on us Europeans but be assured we are more awake than you Americans!

Did you hear your Rep.-lead House is blocking the funding of your HOMELAND Dept. just to repeal your social security bill? Don't worry about us mate. We are ok here
BTW I wish Americans would wake up too, but don't have much hope for it. ;^)
The mind thinks, the heart knows...
Quoting Ever E. Man
I couldn't agree with you more! I have nothing but Love for the people of Europe & the people of America, as well.

My remarks have to do with the governments, which are both self-interested & self-serving. They claim help the citizens, but do the opposite.

Sorry if that offends anyone. It's not my intention to offend by remarking about government machinations.

Best regards,
may all your trades be winners! ;^)
Aw! Ok! Lost in translation then You are neither American nor European? Ok, thats fine.

TBH, I think you are a very illuminated person. I only hope you do not overemphasis governments, politics or economic policies in your daily life.

Happy Trading too and all the best!

NB: I will continue reading your views as they are very inspiring.
Thank you for the kind words!

Very best regards to you & good luck in your trades!
The mind thinks, the heart knows...
Well Central Banks are the ones deciding on monetary policies, not the government themselves. They closely work with the government but even in America, the Fed is a privately owned entity.And clearly while the whole system is flawed, Draghi's LTRO program single-handedly halted the eurozone economic demise last time.

Then when you look at how modern QE in America did indeed create a much better environment by tackling the problem of mistrust by banks not lending money to anyone, that prevented businesses expanding therefore effectively putting the Us economy in a sorry state, is it so far fetched to think that EU QE will do the same? EU banks are still spooked.by the events over the last few years and have largely stopped lending and that is a terrible thing. Loans dont have to be a negative thing if a company is going to use the cash to perhaps create a new factory able to fulfill a new massive order they might have gotten - in that case, getting a loan of 1 million to generate 10 million plus is indeed a very good thing.

QE these days is meant to generate cash flow for the top of the food chain, putting cash into companies that will in turn be able to generate more jobs through expansion therefore creating more people with disposable income to go and spend that cash.

Any environment that causes the stocks to double or treble in value is a positive environment. I for one, support QE and super Mario.

Www.angelocapital.co.uk
Quoting doggette
....And clearly while the whole system is flawed, Draghi's LTRO program single-handedly halted the eurozone economic demise last time.

Then when you look at how modern QE in America did indeed create a much better environment by tackling the problem of mistrust by banks not lending money to anyone...

QE these days is meant to generate cash flow for the top of the food chain, putting cash into companies that will in turn be able to generate more jobs through expansion therefore creating more people with disposable income to go and spend that...
Everything you've stated is pretty much what is served up by the main stream media, & is helpful for trading when there is not a crisis.

People are absolutely willing to believe what makes them feel comfortable, & markets are moved by their perceptions, whether delusional or not. ;^)

http://youtu.be/ehCAbHFc8Uw

Rather than deal with the numerous flaws in your post, I'll just refer you to Martin Armstrong's blog, which if you care to see things as they are will be very beneficial.

http://armstrongeconomics.com/armstrong_economics_blog/

If you want to see things through your biases, then my explanation wouldn't help anyway. ;^)

Good luck in your trading!
The mind thinks, the heart knows...
Quoting Ever E. Man
Everything you've stated is pretty much what is served up by the main stream media, & is helpful for trading when there is not a crisis.

People are absolutely willing to believe what makes them feel comfortable, & markets are moved by their perceptions, whether delusional or not. ;^)

http://youtu.be/ehCAbHFc8Uw

Rather than deal with the numerous flaws in your post, I'll just refer you to Martin Armstrong's blog, which if you care to see things as they are will be very beneficial.

http://armstrongeconomics.com/armstrong_economics_blog/

If...
Everything I stated is based on previous facts, basic macro-economy and my own trading over the last 6 years:

1. Did Fed's QE cause a massive rally and cause equity markets to quadruple? YES

2. Did that cause the big companies to positively turn around failing US economy by generating more jobs? YES

3. Is there doubt that LTRO saved Europe from going bust? NO

4. Was euro kept afloat and almost hit 1.40 when supposedly EU was on the verge of breaking apart? YES

5. Is there doubt that a massive influx of new EU QE cash will cause EU equities to rally even more? NO
in fact its already happening in DAX and it's just the beginning - mark my words. This move is not what a normal rally looks like in DAX and I was around when S&P started rallying - same thing, sudden massive rallies extending far beyond your average daily range - a sign of new business flowing in.

If you want to go against these FACTS, it's your decision and you're welcome to trade against the facts.

I know that the hedge funds are creating their strategies based on the aforementioned facts (I used to work for one) and I will be selling E/U rallies and buying DAX dips.

Having said that I don't know much about your strategy or your way of trading - you might be a successful counter-trend trader who takes profit off quick counter moves.
But for me, I like my swings that last several days. And for that I find trades with higher value, capable of surviving intraday whipsaws. With the way fundamentals are looking, the most highly probable trades are buying dips in DAX and selling rallies in euro-related pairs off higher timeframe supply/demand levels and market profile value area.


Happy trading
D.
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