The Short Lived Genius of Draghi

I never really got a sense of Mario Draghi, perhaps it's because of US culture, turn on the news and it's US news for the most part unless a Tsunami hit somewhere, people are more interested in Miley Cyrus than the rest of the world. I've always noticed in my travels abroad that the news coverage was global, granted the US is a big place, but there's a distinct difference. Maybe it's because when he talks it sounds like he has a mouth full of marbles, but once again Draghi has done with words what Helicopter Ben does with well over a trillion in newly in cash.

Not including the fact that since Ireland returned to the debt markets, there's a wave of interest in buying up PIIGS debt. Portugal did follow through today with a 5 year issue that did fantastic, Spain had an oversubscribed Debt Auction and others INCLUDING GREECE are now talking about returning to the debt markets, a sign of the times? Out of equities and back in to peripheral bonds? Bunds even saw an outflow, likely to finance PIIGS offerings.

In any case, the name of the came is whack your currency as low as you can in Central banking. Bernanke does it with massive QE. Look at what Draghi did this morning after the ex-Golmanite (actually it's like Hotel California, once you enter you never leave) left ECB policy/rates unchanged...

 On the news that reates were left alone and no policy changes were made, the EUR rocketted higher taking all EUR crosses higher like EUR/JPY above or EUR/USD, etc.

Then at his press converence, he talked it right back down with a dour, downbeat assesment of the economy, economic risks, extended low inflation, extended period of stable or even lower rates, etc. It's amazing how fast the Euro dropped at 8:30.

Of course the Euro up sent the EUR/JPY up which sent the Index futures up...

Here's ES on the ECB statement, it hasn't fallen off as quickly on the Draghi press conference and Initial Claims did little to move the market.

I guess Goldman is better at writing policy statements than Bernanke, oops I mean Draghi...


That's pretty much what's going on with the market as of right now...