draghi party tonight, page-3

geez,hoping "super Mario" don't dissapoint!.He might end up doing a horizontal Lambada at a Silvio bunga bash and get his head imprinted on the plasterboard just above the pillows?.Esky's full o' ice!
Profits to all.BMD.


http://investmentwatchblog.com/black-thursday-september-6th-2012/


BLACK THURSDAY SEPTEMBER 6TH 2012?
September 6th, 2012
1
If ECB disappoints the market tomorrow, it will trigger sharp worldwide selloff and global recession!
Definition of ‘Black Thursday’
The name given to Thursday, October 24, 1929, when the New York Stock Exchange plummeted, leading to the Great Depression of the 1930s.

The Most Powerful Man In The World Is Going To Speak Tomorrow
Today is turning out to be kind of quiet, but we just want to remind you that tomorrow is going to be pretty nuts.

For weeks, the entire world has been anticipating comments from the most powerful person in the world: Mario Draghi*.

He is expected to reveal the official details of the ECB’s scheme to buy bonds of peripheral countries for the purpose of lowering their risk premium and better transmit monetary policy.

The details started coming out today, but the expectation is that Draghi will announce unlimited peripheral bond buying of assets with durations out to 3 years. That buying will be conditional on the beneficiary countries engaging in fiscal reforms, and the buying will be “sterilized” somehow, which means that the buying will be counteracted with some kind of operation to remove liquidity from the system.

No Bazooka As ECB Backtracks: Draghi Won’t Pursue Yield Caps, To Sterilize Bond Buys In SMP Continuation
Bloomberg has leaked what likely will be the final plan of the ECB tomorrow, which contrary to previously rumors stating that the ECB will pursue yield caps, or even just buy bonds on an unsterilized basis, appears to be a huge dud:

ECB BOND PLAN SAID TO REFRAIN FROM SETTING PUBLIC YIELD CAPS
DRAGHI’S BOND PLAN SAID TO PLEDGE UNLIMITED, STERILIZED BUYING
ECB PLAN SAID TO FOCUS ON GOVT BONDS, MATURITIES UP TO 3 YEARS
ECB SAID TO CONSIDER SELLING BONDS IF CONDITIONS NOT MET
ECB PLAN SAID TO STRESS CONDITIONALITY OF ANY BOND PURCHASES
ECB BOND PLAN SAID TO HAVE BROAD COUNCIL SUPPORT – but not unanimous, as Germany again objects




Analysts Respond To ECB’s Toned Down Plan: “Priced In” And Details Still Lacking
The first responses by the Wall Street sellside brigade to the ECB’s “unlimited” yet somehow “sterilized”, no longer rate capping thus unsterilized plan emerge and they are, in a word and as expected, unimpressed. Via Bloomberg:

ING

“Already priced in the short end of Italy and Spain,” says rates strategist Alessandro Giansanti in an interview.
Says mkt is waiting for further details regarding:
Explicit maturities of purchases
When the bond purchase program will begin
Which country will ask for support
How the EFSF/ESM will be financed
Rabobank

The absence of key details “will likely limit the mkt response,” writes rates strategist Richard McGuire in a client note
Says key details regarding conditionality are missing; these will determine whether Spain requests an aid program or is forced into one by the markets
Monument

This is broadly what markets were expecting, even if some in equity markets were hoping for unsterilized, Marc Ostwald says in email.
Unsterilized buying not an option given would be outright financing of state debt
Also some caution as story gives the outline of Draghi’s plan, doesn’t tell us what the various ECB committees have advised and how the rest of the council will react
* * *

ECB may disappoint on new anti-crisis measures: analysts
FRANKFURT — Financial markets risk disappointment if they expect the European Central Bank to unveil a cure-all for the eurozone’s seemingly never-ending debt crisis this week, analysts warned on Wednesday.

Expectations are running high for the regular monthly policy meeting of the ECB governing council on Thursday after ECB chief Mario Draghi suggested last month the central bank “may” reactivate a contested programme to buy up the sovereign debt of eurozone countries, albeit under strict conditions that are still in the process of being worked out.

But since then, German central bank chief Jens Weidmann has launched a publicity counter-offensive against any such measures.

Furthermore, Germany’s Constitutional Court is scheduled to give its opinion on Europe’s anti-crisis tools next week, so Draghi will likely opt to hold his fire for now, analysts suggested.



Danger lurks if ECB disappoints Thursday
Given its terrible track record, don’t be surprised if the ECB only announces another set of policy principles but no actual bond buying — stating that it will be postponed for more study.

Keep in mind that euro-zone leaders really don’t trust each other and think they have time on their side. And since there is seemingly no crisis this week forcing them to act, they might very well just punt.

ECB’s Knot says no ECB bond purchases without full conditionality
JOUY-EN-JOSAS, France —

Countries should have to make formal requests and agree to strict conditions before the European Central Bank buys their bonds to drive down their borrowing costs, a top bank official said Friday.

** Analysts at Morgan Stanley see 40% chance that German Constitutional court does not ratify ESM