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Draghi: The ECB is "operationally prepared" for negative interest rates. The bank's deposit...

Draghi: The ECB is "operationally prepared" for negative interest rates. The bank's deposit facility currently yields 0.0%. As for the benchmark refinancing rate (now at 0.75%), Draghi says a cut was discussed. It sounds like the ECB is waiting for a couple of soft CPI prints to give it an excuse for cutting. The euro is sliding now, -0.3% to $1.3031.
Comments (1)
  • Brian Bobbitt
    , contributor
    Comments (1899) | Send Message
     
    Negative interest rates. Now that's a tickle. Can you imagine, you getting someone to let you hold your money, and then give him back less than he gave you just for storing it. Now remember, we aren't talking about renting a closet now. We are talking sending an electronic note, and keeping the note on an electronic ledger somewhere in the deep blue sea. Doesn't this turn on a red light of some kind, warning us of a problem in the system? I cannot see how the Eurodollar is keeping it's lofty level. I am short the Euro with EUO and for the foreseeable future going to hold that position.
    I got out of DRR because it was not acting fairly AT ALL. Many times I saw the Euro down, and EUO up, and DRR down, so stay away from that one. Shorting the Euro$ is probably the easiest no brainer I have ever seen in my trading life. (not counting owning precious metals) So, have to put it #2, but still more to come, says I.
    Capt. Brian
    The Lost Navigator
    6 Dec 2012, 10:11 AM Reply Like
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