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European shares gain back nearly all (and in some countries more) of yesterday's sharp sell-off...

European shares gain back nearly all (and in some countries more) of yesterday's sharp sell-off as the implications of yesterday's ECB meeting become clear. Yes, there was no immediate candy, but the EU is not the U.S. and the ECB is not the Fed. These things take time, and action is coming. Draghi:  "Over the coming weeks, we will design the appropriate modalities for such policy measures."
Comments (10)
  • Two years into a slow motion train wreck, and the ECB has assured the world they will have a plan of action at some point. Is it surprising everyone took that with a grain of salt?
    3 Aug 2012, 08:13 AM Reply Like
  • Two plus years and likely to be many more years yet. The EU is simply not willing to realistically address any real solutions. But they are willing to talk and kick the can as long as possible.
    3 Aug 2012, 01:26 PM Reply Like
  • We hear that Mr Draghi has hinted that the Securities Markets Program or bond buying scheme would likely continue on the basis that European governments approach the current bailout fund, the EFSF, for an official request for aid which in turn will allow the ECB to continue the bond buying scheme. This may be because of pressure and concern from the Bundesbank. Time will tell.
    3 Aug 2012, 08:27 AM Reply Like
  • Because the EFSF and LTRO worked so well so far.
    3 Aug 2012, 10:29 AM Reply Like
  • americans think in terms of days and weeks
    europeans think in terms of decades and centuries
    we will still be discussing this topic years from now
    3 Aug 2012, 10:38 AM Reply Like
  • I expect what will happen is that the ECB will go ahead and print while the Germans keep quiet for a while until September comes along at which point we may get a "surprise".
    3 Aug 2012, 11:07 AM Reply Like
  • Draghi is no Trichet (who probably doesn't miss his old job), and is likely sitting in on Bernanke's virtual classes.
    3 Aug 2012, 11:11 AM Reply Like
  • The US process was slow too. Who can forget Congress voting down TARP on the first go around, and the Dow giving up 777 points the next day?

     

    When Geithner announced his plan, he had that deer in the headlights look, and he was short on specifics. Many pundits missed the point, he had just defined the limited downside of bank stocks, and the cost of recapitalization, to be born by USG, if necessary. It was almost a month to the bottom of 666 on the S&P 500 from there.

     

    Watch out for those modalities, they'll get you every time.
    3 Aug 2012, 11:45 AM Reply Like
  • More talk - less walk. Business as usual.

     

    A second look? More like hopium than fact.

     

    Are the same libor scamsters in charge of the European markets?
    3 Aug 2012, 12:09 PM Reply Like
  • A. The "coolaid" everyone drank was slow in reacting.

     

    B. They needed to reduce yields for the auction earlier this past week.

     

    C. They need to stall while everyone goes on vacation.

     

    D. All of the above.
    3 Aug 2012, 04:10 PM Reply Like
DJIA (DIA) S&P 500 (SPY)