ECB Ready to Act Very Soon: Council Member

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http://www.cnbc.com/id/48585350

The European Central Bank is determined to bring down excessive risk premiums for member states in bond markets and should be ready to act very soon, ECB governing council member Christian Noyer said on Thursday.

"Don't have any doubt about the determination of the governing council and its capacity to act within the terms of its mandate," he told Le Point magazine in an interview.

"Our operations will be of sufficient size to have a strong impact on the markets. We should be ready to intervene very soon, prioritizing short-term debt markets," he added.

Noyer said the mandate of the ECB [cnbc explains] included protecting the solidity of the euro zone.

"An exit of Greece from the euro zone is not something which we envisage," he said. "There is no plan to prepare for the exit of any country from the euro zone."

He noted, however, that the central bank could not substitute for political action by member states, which needed to press ahead with reforms to reduce their debts and market their economies more competitive.
Promises, promises!!! :P
 
They still have not dried up the wells in Greece yet. They need a little more time to achieve this, then Greece will be 'allowed' to exit.
 
It's been pretty quiet over there lately.....About time we heard what's going on..... Greece has big debt payments this month too I think???

Might hold off buying any more pm's until this latest deal is done too.
 
Bwahahahahahahahahahahahahahaha, it's all just a fkn joke. Whenever an ECB storiy comes on the radio I start yelling at the radio. Is that normal? :rolleyes:
 
The next generation will consider it normal.

What was it? Every 70 years or something a currency collapses? Yeah, seems quite canny how it coincides with the average lifespan of a human (well it is bloody close if avg is 78). ;)

They don't want any living witnesses. :lol:
 
mmm....shiney! said:
Bwahahahahahahahahahahahahahaha, it's all just a fkn joke. Whenever an ECB storiy comes on the radio I start yelling at the radio. Is that normal? :rolleyes:
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What the ECB Can Actually Do... Not Much
http://www.zerohedge.com/contributed/2012-08-09/what-ecb-can-actually-do-not-much
Whether this is truth or Draghi is bluffing is very difficult to tell. Germany has fired back several times that it's not in favor of this policy. The Bundesbank's President
even went to far as to say this move would be against "democracy."
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srsly?!
As for the ESM, it has not even been ratified yet! (Germany has held up its ratification in courts until September 12 2012).

On top of this, Spain and Italy will contribute 30% of the ESM's funding. So they're going to be bailing themselves out!?!

OK, let's calm down and assume that Spain and Italy don't have to do this (impossible given the way the ESM is structured). If you remove Spain and Italy from the funding mix it means that Germany and France would have to shoulder 66% of the ESM's funding.

Neither Germany nor France have that kind of money (66% of 700 billion). Even if they did, for them to be on the hook for this would mean both countries getting downgrades.
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It is a massive joke the whole lot. Like pulling yourself up by your own bootstraps. Still I am confident nothing will happen while the PIIGS still have gold, once the gold gets put up as security all hell will break loose (hopefully metaphorically)
 
I agree.
Guess we'll see what happens on 20th Aug (Greek have to pay 3.2BN EURO and then in Sept we have the German ratification of the ESM.)
An interesting Q4 I feel...
 
Anyone know a date when this will happen..... Maybe around the 20th when Greece has to pay? I just like to know whats going on and when thats all..
 
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