EURUSD is down over 120 pips this morning and accelerating as Mario Draghi drops all kinds of tapebombs in his Q&A with his Brussels overlords. Most crucially, slamming EURUSD 70 pips and breaking Wednesday lows, was his admission that while The ECB would "not buy" non-performing Italian bank loans, it would (confirmed by Italy's Treasury) allow the busted deals as repo collateral (how close to par?) allowing Italian banks to kick the can just a little further.

So to clarify...

*DRAGHI SAYS ECB NOT TALKING ABOUT BUYING ITALIAN BAD LOANS

But, as Italy's Treasury confirms, will allow Italian banks to post them as repo collateral (who knows what haircut)

*DRAGHI SAYS DEALING WITH BAD LOANS REQUIRES TIME

So - to translate - we'll burden the European taxpayer with all these busted loans, give you cash (probably with no haircut) because all it needs is some time and these loans will all be money good?

*DRAGHI SAYS NO DIFFERENTIAL TREATMENT OF BAD LOANS IN EURO ZONE

Oh and what we are doing with Italy's NPLs, we will do for all EU nations.

No wonder EUR is dropping...

Is EURUSD tumbling from this apparent "easing" or from the incredulity of Draghi's hubris in destroying any semblance of ECB balance sheet strength? Or both?

*DRAGHI SAYS QE IS FLEXIBLE ENOUGH TO ADAPT TO MARKET CHANGES

In other words, we will buy whatever is falling?