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Draghi: He shoots down ideas the ESM (the permanent rescue fund) can get a banking license,...

  • Thursday, August 2, 2012, 8:58 AM ET
    Draghi: He shoots down ideas the ESM (the permanent rescue fund) can get a banking license, saying the current legal structure does not allow it to become an eligible banking partner to the ECB. At this point, essentially all that was drawn from his comments last week has been shot down. European shares and the euro have staged a 2-3% reversal since the press conference started.
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This news story has 19 comments:

  •  
    This is why you don't promise when you are not sure if you can deliver
    2 Aug 2012, 09:09 AM Reply Like
  •  
    oh more promises in upcoming weeks....:)
    2 Aug 2012, 09:16 AM Reply Like
  •  
    Draghi is a drag. He should learn to keep his mouth shut.
    2 Aug 2012, 09:15 AM Reply Like
  •  
    Socialist non austerity French 2 year bonds .16%
    2 Aug 2012, 09:15 AM Reply Like
  •  
    France is in for some major trouble in future but the markets haven't targeted it yet. Production down, margins shrinking as labour costs keep rising unabated, which has fuelled consumption by 60% since 1995 - compared to flat-lining Germany for the same period. Hollande's social programmes will explode his budget while the whole country is living in denial. Their industry is mainly successful within a small club of large global companies, but lacks the depth that Germany has to offer by way of its middle-sized exporters. They are economically slipping away from the core to the peripheral.

    I'm keeping a very wary eye on their economic development.
    2 Aug 2012, 10:46 AM Reply Like
  •  
    French Bonds may end up being the short of the century.

    They have no printing press for Euros, and they cannot control their deficits.
    2 Aug 2012, 12:16 PM Reply Like
  •  
    Agreed , hard to believe they hit all-time low yields this week
    2 Aug 2012, 12:29 PM Reply Like
  •  
    Looks like Draghi is going to be tested on the Spanish bonds....
    2 Aug 2012, 09:22 AM Reply Like
  •  
    Draghi is the boxer who says "watch me, I'm going to hit you" and in the meantime, round after round, gets punched by his opponent, without delivering himself.
    2 Aug 2012, 09:54 AM Reply Like
  •  
    Our heartiest thanks for last week's ramp up tip. In which Swiss bank account should we deposit your cut?

    Best Regards,

    Your "friends" from the HFT/Bank community
    2 Aug 2012, 10:11 AM Reply Like
  •  
    Draghi has overestimated his authority by pledging decisive measures last week. As he failed to get Mr Weidmann from the Bundesbank on board, he got frustrated and did not announce any new measures. I wonder which game the allmighty Bundesbankand its amazing President are playing. Mr Weidmann will cause the collapse of the European bourses, the collapse of the Euro and Germany will be the last country left standing. mr Weidmann is a danger for Europe, he is a disgrace for Germany!
    2 Aug 2012, 10:26 AM Reply Like
  •  
    Sounds like you think Germany should guarantee every EU country's debt, agree to higher inflation, agree to unlimited transfers to southern EU countries, and subsidize the rest of the EU, etc. Might just work provided the Germans are willing to see their taxes increase significantly to pay for everyone else.
    2 Aug 2012, 11:44 AM Reply Like
  •  
    EUO
    2 Aug 2012, 10:29 AM Reply Like
  •  
    Hope and Change ? ? ?
    2 Aug 2012, 11:24 AM Reply Like
  •  
    Why is this a surprise?
    2 Aug 2012, 11:57 AM Reply Like
  •  
    Because former Goldman Sachs employees are typically trustworthy people. Their word is their bond.
    2 Aug 2012, 12:20 PM Reply Like
  •  
    ECB ... like giving a machine gun to a monkey
    2 Aug 2012, 12:30 PM Reply Like
  •  
    If Draghi never made that comment last week, and they delivered this news the market would be up....what a poor job in transmission of policy!

    they could have done a rate cut or LTRO(a REPO, just velocity of money) and said this and we'd be higher...

    your house is on fire....the firemen are at scene...but they sit there and wait for the owner to ask for help while the house keeps burning and spreading the fire to other houses...the new ECB.
    2 Aug 2012, 12:33 PM Reply Like
  •  
    Draghi bought the Euro another week or two of time with his comments. The markets rallied, and they still haven't given up all the gains, all for free. Eventually this will stop working, but Euro officials have been playing this game for 3 years now.
    2 Aug 2012, 12:42 PM Reply Like
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