ECB buying "aggressively" short term 2yr and 10yr Italian government bonds- traders

“ECB is buying aggressively,” one trader told Reuters. Another trader said the ECB was now also targeting the two-year bonds, in addition to the country’s 10-year paper.

http://www.ft.com/intl/cms/s/0/ea9fcdfa-09ed-11e1-8d46-00144feabdc0.html#axzz1dCkKJbrU

 

Mark my words, there's only one thing now that can stop Europe from imploding: a normal central bank and not a crippled one like the ECB.
ECB needs to show nuclear weapons and say to the markets:" we won't allow europe's implosion, no matter what"

Anything else is B.S.


It’s time for you to fire the silver bullet, Mr Draghi
By Alexander Friedman
http://www.ft.com/cms/s/0/cfc80154-0949-11e1-8e86-00144feabdc0.html?ftcamp=rss

 

And just how do they do that? Say, "We'll drop money out of helicopters, if necessary?".

Unrestrained and unlimited "money printing" leads to hyperinflation, currency destruction, and bankruptcy for all whose assets are denominated in that currency.

Is THAT a solution? Never has been through history.

"Financial engineering" isn't going to solve Europe's problems nor the same in the US.

 

I have read Friedman´s comment.

Absolutely. Mario Draghi has simply to pick up the phone and tell Angela and Wolfgang:"What do you want? An EURO implosion or an EURO explosion?"

I am full with OTM puts in all indices, EURO currency put options and other puts. I guess half the world is. Implied volatilities are exploding all around.

 

They haven't been aggressive at all today.

 

While I totally agree, money printing NOW is not about solving debt problems, but it buys time for these idiots of politicians to finally understand what´s at stake! Act now and forget about "hyperinflation". Better hperinflation than hyperdeflation.

 

Yes, showing the guns is enough, ever heard "don't fight the FED" ?
But you can fight the ECB. Because is a crippled central bank.
Fractional reserve system+crippled central bank=the perfect recipe for disaster.
Hayek would laugh twice as hard.

As you wrote in the other thread, we already had high inflation, now we are in deflation. We can/should/will print trillions, without doing much to inflation.

 

Disagree! No such thing as "hyperdeflation".

We wouldn't even HAVE inflation if it were not for central banks money printing and governments' deficit spending.

Deflation can only go to "fair value" of real assets... yes, a bit of overshoot is possible and expected. But "hyperinflation" destroys EVERYTHING AND EVERYBODY!

Governments hate deflation, of course. Their perspective extends only to the next election. But the citizenry should hope for and embrace "deflation.. to real value of assets".

 

I agree 100%
E.g. only now italian idiots politicians are understanding.
After they had months, today an opposition left party leader said that they are available to work all weekend with the goverment to approve the austerity budget. Poor fellas, they will work all weekend. Ba$tard$.

 

I am quoting comments from FT´s "high quality media team" or with other words: EURO bashers.