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zugzwang

Super Mario Ready To Do More Ltro

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It's long been my contention that Bernanke wouldn't begin to taper without first ensuring that an alternative liquidity provider was in place to mitigate the shock. Given his record, I naturally assumed the onus would fall on Carney to fulfill the role. However, recent events suggest the credit impulse from HTB1 has made the UK economy much too hot for additional stimulus this year. Step forward Mario Draghi: Saviour of the World, Part II!

http://www.bloomberg.com/news/2013-09-23/draghi-says-ecb-is-ready-to-use-another-long-term-loan-if-needed.html

European Central Bank President Mario Draghi said he’s ready to deploy another long-term refinancing operation to provide funds to Europe’s banking system if needed. “While repayment of central bank credit is certainly a sign of normalization, the resulting reduction in excess liquidity can reinforce upward pressures on term money market rates,” Draghi said in testimony to the European Parliament in Brussels today. The ECB is ready to use tools “including another LTRO, if needed.”

Euro region money market rates rose in July to a level that Draghi described as “unwarranted.” While those rates have since declined, excess liquidity in the financial system is approaching a level the ECB has previously signaled as a lower limit.

“Reliance on ECB funding support has been steadily declining,” Draghi said. “These improvements are reflected primarily in the on-going advance repayments of funds by several banks which had borrowed from the ECB under the two three-year longer-term refinancing operations.”

Europe’s banks will repay 7.91 billion euros of three-year loans this week, data released by the ECB on Sept. 20 showed. That’s the highest level of repayments since May.

“We are ready to use any instrument including another LTRO if needed to maintain the short term money markets at the level that is warranted by our assessment of inflation in the medium term,” said Draghi.

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It's long been my contention that Bernanke wouldn't begin to taper without first ensuring that an alternative liquidity provider was in place to mitigate the shock. Given his record, I naturally assumed the onus would fall on Carney to fulfill the role. However, recent events suggest the credit impulse from HTB1 has made the UK economy much too hot for additional stimulus this year. Step forward Mario Draghi: Saviour of the World, Part II!

http://www.bloomberg.com/news/2013-09-23/draghi-says-ecb-is-ready-to-use-another-long-term-loan-if-needed.html

as long as they pay for it with their own money..no problem.

not much use blaming all the worlds ills on the rampant consumerism of the anglosaxons,when it was actually the former(who were clandestinely controlling the anglo saxon economies at the time)...who created the problem.

farage is right.

not our problem economically,not our probelm militarily.

we look after our own from now on...no more bailouts.

..time to get suited,booted and start making stuff that we don't need to import again.I think there are still countries in the EU that we can cooperate with, but it will most certainly be on a partnership basis rather than omnipotent overlordism....THIS POINT NEEDS TO BE FORCIBLY RAMMED HOME.....IE EUROPE IN FUTURE has a problem with either rampant leftists/radical islamists (or perhaps they thought fascism was dead,how about a new hitler on steroids?)then we have already cemented ties across the pond...and will not respond until absolutely BEGGED to..because of the factions in EU that have recently tried to stitch us up to fight their wars for them, while they cream off the social benefits.

we are very,very cross.

and it's time to sign the divorce papers.

the EU as an organisation is finished.....too any beaurocrats with delusions of absolute power....and its the lust for power that will be its downfall.

time to call it.

relationship of brothers...ok.

me priest,you serf...shut up and do as your told..............feck off!

Edited by oracle

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It's a giant game of pass the parcel. The European LTRO is never going to be abandoned, the longer it continues the more our bankers will be dependent on it. The ECB isn't going to replace the Fed, all what is going to happen is the Fed/ECB will create an even bigger clusterfeck that cannot be escaped. However I think they can keep this going for a long time yet barring any "black swan" events.

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