Friday’s unemployment report solidified the TRIFECTA of LIQUIDITY for the week. ECB President Draghi seeded the “liquidity clouds” at Thursday’s press conference by announcing the installation of the OTM (outright monetary transaction), which will allow the ECB/ESM to purchase unlimited amounts of sovereign debt of up to three-year duration–of course with conditions for those asking for help. Draghi is hoping to buy the whole EU project enough time so that a FISCAL UNION CAN BE FORMED WITH THE ABILITY FOR THE EU TO ISSUE A TRUE EUROBOND.
Posts Tagged ‘liquidity’
Tags:Basel 3, Bernanke, BOC, Bullard, China, Christine Lagarde, collateral, copper, Draghi, ECB, ESM, EU, Eurobond, Fed, FOMC, Gold, Hu Jintao, IMF, IOER, liquidity, Mark Carney, nonfarm payrolls, operation twist, OTM, QE, repo, silver, unemployment rate, Wen Jiabao, yield curve
Posted in Canada, Central Banks, China, Commodities, Europe, unemployment | 5 Comments »
It is now official: EUROPE UNDER THE GUIDANCE OF THE TWO DEANS OF PSY-OPS HAVE A PLAN FOR RECAPITALIZING THE BANKS AND BOLSTERING THE EUROPEAN FINANCIAL SYSTEM. The world heaved a sigh of relief that the Sunday meeting in Berlin resulted in a PLAN. The intricacies of what the plan entails are a secret, but for today the markets reacted positively, grasping for any sense of hope. The world’s equity markets reacted as if EURO’s were being air dropped all over the continent. The BUNDS were sold as the reallocation trade sent money exiting the havens in search of risk and the possibility of higher returns … at least for a day.
Tags:Berlin, Bernanke, Bunds, China, David Cameron, Dexia, EFSF, Euro, Eurocrats, European Debt Crisis, Fannie Mae, Fed, Financial Times, Freddie Mac, Gold, Kuwait Investment Authority, liquidity, Merkel, Milton Friedman, Russia, Sarkozy, solvency, Sovereign Wealth Funds, Swiss Franc, U.S. dollar assets, UK
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