Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: PJr who wrote (1347)	6/5/2014 2:45:50 PM
From: Kirk ©	Respond to of 26731

I just love reading the "brilliant" people on the net and TV saying things like this rally today is due to David Tepper or low jobs numbers are signs we are stumbling and the Fed can postpone the taper. They are clueless it seems. There was a lot of fear in growth stocks over the recent plunge in yields of the US treasury market. All the "smart money talking heads" were saying it was smart bond buyers knowing the US economy was about to fall off a cliff and at least print another quarter of negative GDP, etc... It turns out members of the ECB knew they were going to cut rates to a negative 0.1% which is a charge to store money safely... so they got ahead of this and bought US treasuries, the safest alternative to their own currencies. The US market figured this out and stocks like Finisar are soaring today and the US markets are making new highs again. ecb.europa.eu PRESS RELEASE 5 June 2014 - ECB introduces a negative deposit facility interest rate Deposit facility interest rate cut effective as of 11 June 2014 Negative rate to apply also to average reserve holdings in excess of the minimum reserve requirements and other deposits held with the Eurosystem When deciding to lower the key ECB interest rates at its meeting today, the Governing Council of the ECB took the decision to cut the interest rate on the deposit facility to -0.10%. This change will come into effect on 11 June 2014, together with the changes to the interest rates on the main refinancing operations and on the marginal lending facility. The negative deposit facility interest rate will also apply to: (i) banks’ average reserve holdings in excess of the minimum reserve requirements; (ii) government deposits held with the Eurosystem that exceed certain thresholds that will be set in the relevant Guideline to be published by 7 June; (iii) Eurosystem reserve management services accounts if not currently remunerated; (iv) participants’ account balances in TARGET2; (v) non-Eurosystem NCB balances (overnight deposits) held in TARGET2; and (vi) other accounts held by third parties with Eurosystem central banks when stipulated that they are not currently remunerated or are remunerated at the deposit facility rate. For media queries, please call William Lelieveldt on +49 69 1344 7316.