Seeking Alpha

The ECB announces it purchased €13.3B of sovereign paper through its Securities Market...

The ECB announces it purchased €13.3B of sovereign paper through its Securities Market Program (SMP) in the week ended Sept. 2 vs. €6.7B the previous week.
Comments (9)
  • Papaswamp
    , contributor
    Comments (2218) | Send Message
    Well that was a waste of money..
    5 Sep 2011, 09:47 AM Reply Like
  • Sqwii
    , contributor
    Comments (24) | Send Message
    And where the HECK does this 13.3B euro comes from + the 6.7B euro?


    Who is paying for all this ?


    If so - who is going to bail out ECB in the end ?
    5 Sep 2011, 09:48 AM Reply Like
  • Sqwii
    , contributor
    Comments (24) | Send Message
    Its completeley a waste of money and no matter what they do - EU WILL collapse with the US - the entire banking system will in the future collapse , not to sound bearish - but with all the debt + the lowest interest rate in space - what can they do ? They need to let the banks fail.........
    5 Sep 2011, 09:50 AM Reply Like
  • Sqwii
    , contributor
    Comments (24) | Send Message
    The only thing you can do is to stop spending - save more and after you have saved a lot , you can invest and produce.
    5 Sep 2011, 09:50 AM Reply Like
  • User 509088
    , contributor
    Comments (1479) | Send Message
    gold just jumped. so the auctions this week were subsidised.
    5 Sep 2011, 09:57 AM Reply Like
  • kmi
    , contributor
    Comments (4528) | Send Message
    The ECB can stay irrational longer than you can stay solvent. I'm not betting against the ECB, but I am watching EURDOL and FXE.


    I don't believe the ECB cares if the Euro falls vertically and in fact it may pursue such an outcome; to boot this may be yet another reason why the ECB and the central leadership in Europe is pursuing bailouts over disintegration.
    5 Sep 2011, 10:17 AM Reply Like
  • Tack
    , contributor
    Comments (14762) | Send Message


    You bring up an interesting point.


    In watching the building hysteria, one wonders why the Euro isn't being sold off in a panic, either because it will be diluted to death or because it will simply collapse and disappear. That such is not occurring (moderate price adjustments against some currencies notwithstanding) tends to suggest that somebody (a lot of somebodies) believes there's more staying power to the Euro than the present hysteria in equity markets suggests.
    5 Sep 2011, 10:28 AM Reply Like
  • The Last Boomer
    , contributor
    Comments (1015) | Send Message
    I disagree that ECB does not care about the Euro. This is the only thing they cared about in the last 12 months. They raised interest rates in the face of a slowing economy and remained hawkish for just one reason: to prop up the Euro. Why? Don't ask. ECB is irrational.
    5 Sep 2011, 10:32 AM Reply Like
  • RM13
    , contributor
    Comments (1108) | Send Message
    I do agree that relatively stable price of euro is very interesting. Yes, euro started to move down versus the dollar last week, thankfully allowing me to buy calls on euro shorts for reasonable price few weeks ago. The question is why euro to dollar stability? Is there more staying power in euro than I perceive. Is dollar treated as another just as bad fiat currency? Does it mean that the Fed or US banks are on the hook for european bank solvency?


    If that is the case, this is 2008 all over again, except much tougher to bail out, because it lacks unified structure.
    11 Sep 2011, 09:55 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs