Emergency Liquidity Assistance in the Eurozone – Draghi’s Irreversible Euro Put Explained

Last week was not short of volatility with a three party central bank bingo and the nonfarm casino to cap it off. Markets went into the week with extreme expectations and as it became clear that central banks would do nothing concrete, the disappointment loomed.

Still, Draghi seemed to pull yet another rabbit . . . → Read More: Emergency Liquidity Assistance in the Eurozone – Draghi’s Irreversible Euro Put Explained

Banking follies in the eurozone

Edward Hugh has a brilliant analysis of recent events in the eurozone and especially how banks are leveraging the liquidity provided by the ECB to “cleanse” their balance sheet of bad assets and essentially exchanging these for freshly minted euro deposits at the ECB. I think we should be very clear what is going . . . → Read More: Banking follies in the eurozone

ECB/Fed Support for the European Banking System - 750 billion USD, and counting ...

One point that I have been shouting from the proverbial roof tops in my research, to partners and colleagues is that 2012 may well be the year when all major central banks will be conducting both conventional and unconventional monetary easing at the same time. I think this is a very strong testament not . . . → Read More: ECB/Fed Support for the European Banking System – 750 billion USD, and counting …

Random Shots - Fed Outgunned, EMU Outflanked

As I read the latest round-up of comments by Fed officials that they are certainly not ruling out another round of asset purchases I am wondering whether this signals another round of actual quantitative easing by the Fed or whether investors should change their mindset back to before the crisis where it wasn’t the . . . → Read More: Random Shots – Fed Outgunned, EMU Outflanked

Greek Debt Crisis

So, who cares about the Greek debt crisis? It’s a small country, a long ways away.

Answers:

Greece as a Country: “We care!”

The Euro currency countries: “We care!”

Europe Generally: “We care!”

U.S. and International Financial Community: “We care!”

Stock Investors: “We care!”

All right, already.  Here’s why they care.

The background

Through . . . → Read More: Greek Debt Crisis

Random Shots - All Back to Square One?

Starting a new job and settling in a new city/flat has proved a little more unsettling for my blogging efforts than I had expected. Anyway, what better time to return to the fray when the SP500 completes its worst run in a long time returning to levels not last seen since March where . . . → Read More: Random Shots – All Back to Square One?

The Bernank Says To Ron Paul That Gold Is Not Money

This has to be one of the most ironic and ignorant statement I have heard come out of Washington. The tail risk is with people like Bernanke running the Federal Reserve, Trichet running the ECB, the eurocrats trying to run the rating agencies and politicians trying to design everyone else’s lifestyle.

It appears that . . . → Read More: The Bernank Says To Ron Paul That Gold Is Not Money

Heard at the ECB's governing council's pre-conference meeting ...

With (sincere!) apologies to La Roux;

Going in for the Hike

(lead singer JCT with refrain by Axel Weber)

We can fight our crises But when we start seeing prices We get ever so cross And must show we’re the boss They say we shouldn’t care about the headline But we believe it’s just . . . → Read More: Heard at the ECB’s Governing Council’s Pre-Conference Meeting…

A Message to the EUR/USD Longs?

It seems that JCT showed that he and the ECB are not completely blind and deaf when it comes to the reality of a stronger currency in a world where everyone is scrambling to devalue.

As I have noted before, stranger things have happended than the ECB . . . → Read More: A Message to the EUR/USD Longs?

One Step Forward in the Euro Zone?

It would have been hard to believe only a few weeks ago that the euro zone could be the source of any good news let alone news to help push the market forward. Yet, with last week’s successful bond auctions and the pledge of international superpowers such as Japan and China to buy . . . → Read More: One Step Forward in the Euro Zone?