Timing Super-Mario

Hilarious post at FT Alphaville: a bunch of market participants are outraged at today’s ECB meeting not announcing a blank cheque after Mario Draghi’s declaration last week that the ECB would do whatever it takes to save the Euro.

Super Mario picture from http://www.flickr.com/photos/oscarmota/

Mario Draghi on his way out of an ECB board meeting (credit: Oscar Mota on Flickr)

The misunderstanding is simple: he didn’t say they would do whatever it takes within a week, and as the “markets”, or at least the short term traders or bloggers component of it, have a time horizon of about five days and can’t imagine that anyone could have a time horizon of a few months or years, there was inevitable disappointment. The Euro is not collapsing this week, and whatever it takes can be carefully done if and when it’s needed, and a hurried up bond buying programme was unlikely to be it.

Between people who don’t get the timeframe and people who don’t get European politics, the markets are becoming very pleasantly inefficient.

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