The ECB Is Preparing 'Concerted Action' With EU Countries!!! Bundesbank still opposes ECB bond buys!!!

FTSE 100 /quotes/zigman/3173262 5,564 -9 -0.17%
DAX /quotes/zigman/2380246 6,538 -45 -0.69%
CAC 40 /quotes/zigman/3173214 3,206 -1 -0.03%
FTSE MIB /quotes/zigman/1482176 13,187 -23 -0.17%
IBEX 35 /quotes/zigman/2759620 6,257 -112 -1.76%
Stoxx 600 /quotes/zigman/2380150 256 -0 -0.09%

The optimism isn't thin.

More like anorexic.

Bundesbank still opposes ECB bond buys: report FRANKFURT (MarketWatch) -- Germany's central bank on Friday said it still opposes government bond purchases by the European Central Bank but has no problem with tapping the euro-zone's temporary rescue funds to push down government borrowing costs, Dow Jones Newswires reported. The comments come a day after ECB President Mario Draghi made remarks viewed by economists as a signal the institution is prepared to resume bond purchases or take other steps to help bring down borrowing costs. A spokesman for the Bundesbank said the institution still sees further ECB bond purchases as "problematic," while purchases by the European Financial Stability Facility would be "unproblematic," the report said. The euro /quotes/zigman/4867933/sampled EURUSD -0.23% slipped to $1.2257 versus the dollar, down from $1.2284 late Thursday. [link to www.marketwatch.com]

Spanish unemployment hits fresh all-time high! MADRID (MarketWatch) — Unemployment in Spain rose to a fresh all-time high in the second quarter, as a recession in the euro zone’s fourth largest economy led to further job losses, albeit at a lower pace than in previous quarters.

The jobless rate in the quarter, traditionally a good one for employment as it comes just ahead of the busy summer holiday season, rose to 24.63% from 24.44%, the national statistics bureau INE said Friday. The previous all-time high in Spanish unemployment had been hit in the first quarter of 1994, at a time when Spain was in the middle of an economic contraction that led to several currency devaluations.... [link to www.marketwatch.com]

This Is Why Everyone Is Wary Of The Draghi Effect

A promise by European Central Bank President Mario Draghi to "do whatever it takes to preserve the euro" remains the hot topic of investor debate this morning.

Analysts immediately interpreted Draghi's statements as a commitment to do something big, in particular either return to purchasing Italian and Spanish bonds (known as the SMP program) or offer new, even more potent long-term refinancing operations that would pump new liquidity into the system. Draghi had qualified that he would have to work within the confines of the ECB's mandate, and such measures have been among the bank's most potent actions so far.

Nonetheless, there is good reason to doubt that even these measures are forthcoming, or that they would be truly significant if implemented:

Yesterday, officials at the ECB played down the importance of Draghi's comments, arguing that he has said similar things before.


This morning, a spokesman from the German Bundesbank told reporters that it continued to believe that ECB purchases of sovereign bonds would be "problematic," and that it would prefer that the EFSF—Europe's current bailout fund—purchase such bonds if necessary. The Bundesbank is thought to provide the ideological and practical leadership for the ECB. The EFSF is influenced by European countries, some of whom say they are opposed to bond purchases, making the prospect of bond purchases much less likely.


Further, the Bundesbank says it opposes giving the ESM—Europe's future bailout fund, set to go into effect later this year—a banking license, according to Bloomberg, refuting comments by ECB Governing Board member Ewald Nowotny earlier this week saying that the ECB would consider such a proposal. In fact, the Bundesbank argued that this was prohibited by European treaties. A banking license would dramatically increase the ESM's firepower, which most analysts consider inadequate.


Draghi has indeed made similar comments before, to much less market fanfare. Further, he and other ECB officials have repeatedly expressed regret about their bond-buying program, which they felt was ineffective when they used it last year....


Read more: [link to www.businessinsider.com]

2 minBusiness Insider‏@businessinsider

LE MONDE: ECB Is Preparing To Buy Spanish And Italian Bonds [link to read.bi]

2 minBusiness Insider‏@businessinsider

LE MONDE: The ECB Is Preparing 'Concerted Action' With EU Countries [link to read.bi]

The market in the United States won't crash anytime soon, EVEN were we to find a negative reading in this morning's GDP report....they're propping the little girl up to avert any such drop in my opinion....

Well ,Shanghai was prety cool to Draghi put , unch.

He was pretty desperate to see Spanish 10Y bond yield approaching 7.77% .


Let's see what will happen on Aug.2nd ECB meeting.

[link to www.bloomberg.com]

zerohedge‏@zerohedge

As Europe Desperately Attempts To Talk Down Bond Yields Further, Bundesbank Finally Says "Nein" [link to www.zerohedge.com]

Yep, one more wave to terminal top ,to make nice triple top ...

[link to 2.bp.blogspot.com]

1 minzerohedge‏@zerohedge

Greek default #2: IMF WANTS OFFICIAL SECTOR IN DEBT RESTRUCTURING, SAYS NO MORE MONEY WITHOUT DEBT RESTRUCTURING

You don't see triple tops that often, but when you do, ya know the drop is gonna make you shake from fear....this one gonna be bad folks...."d"epression size bad....unfortunately...

1 minzerohedge‏@zerohedge

WSJ: Bundesbank Maintains Opposition to ECB Bond Buying [link to on.wsj.com]

1 minzerohedge‏@zerohedge

Draghi Boxes Himself Into A Corner With Bond Signal: Bloomberg [link to bloom.bg]

Me predicts an S&P of 300 within 18 months.

22 szerohedge‏@zerohedge

“Cannot rule out [Swiss] 10-years will approach zero level, and then probably find a way below it” UniCredit's Kornelius Purps (great name)

2 minBusiness Insider‏@businessinsider

REPORT: Spain Talked About For A €300 Billion Bailout Last Week by @SimoneFoxman [link to read.bi]

19 szerohedge‏@zerohedge

Spain Discussed €300 Billion Full Bailout, Germany "Uncomfortable" [link to www.zerohedge.com]

43 szerohedge‏@zerohedge

The sheer ineffectiveness of the ECB's bond buying: [link to www.zerohedge.com]

47 szerohedge‏@zerohedge

BAC: "Only a weak EUR can save the EUR"

1 minzerohedge‏@zerohedge

Greece Should Quit Euro as Soon as Possible, Latvia’s Finance Minister Vilks said overnight

i hope the Euro goes down as quickly as possible. Then only we will have a solution. Else the problem will be dragging and people will be suffering

zerohedge‏@zerohedge

Q2 GDP 1.5%

4 minzerohedge‏@zerohedge

Spain deputy PM “I will respond with absolute clarity: the government will not seek a rescue, nor is asking for a rescue an option”

2 minBusiness Insider‏@businessinsider

Q1 Final GDP 2.0%, Revised Up From 1.9% [link to read.bi]

4 minBusiness Insider‏@businessinsider

Personal Consumption +1.5% (Est. +1.3%) [link to read.bi]

5 minBusiness Insider‏@businessinsider

BEAT: Q2 GDP 1.5% (Est. 1.4%) [link to read.bi]

It seems like with this morning U.S. GDP numbers the Fed. will put QE #3 will be put on hold temporarily. Let's see how the market will react

Business Insider‏@businessinsider

REPORT: The ECB And Other Public Creditors May Accept Losses On Greek Debt by @maxnisen [link to read.bi]

26 szerohedge‏@zerohedge

Germany, France: must implement June summit conclusions quickly. Market ramps on hope that the event that ramped it in June, is implemented

47 sBusiness Insider‏@businessinsider

Cyprus Keeps Running Out Of Money by @testosteronepit [link to read.bi]