Posts Tagged ‘Bullard’

Notes From Underground: It’s Raining Liquidity All Over the World

September 9, 2012

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.

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Notes From Underground: JACKSON HOLE is RUNNING ON EMPTY

September 3, 2012

The Bernanke speech did not surprise readers of NOTES FROM UNDERGROUND as Bernanke did not promise any new stimulus plan but spent most of the speech recalling the successes of the FED’S extraordinary efforts to stimulate the economy and prevent a disastorous deflationary period from gaining traction in a debt-ladened financial system. The initial market response was a selloff in the precious metals as the ALGOS reacted to a no new stimulus headline with, “risk off” and after reading that the headlines were cursory and misleading, reversed and the GOLD AND OTHER RISK ON ASSETS WENT INTO FULL RALLY MODE.

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