The ECB cannot do the governments’ jobs.
The age of truly easy money may be just getting started.
The biggest winners thus far that may have resulted from the newly communicated intentions from central banks are not the euro or the broad stock markets, but rather gold and gold-related investments.
The ECB is now on a slippery slope from which it may have difficulty extricating itself, especially if the ECB balance sheet swells substantially due to OMT.
Despite the overwhelming evidence that money printing doesn’t work, the Eurozone overlords will to do it anyway.
In the past, the German Constitutional Court has not shown itself to be a political pushover.
Will the ECB stop buying as conditions have not been met or will it justify further purchases since the market demands higher premia, because of increased – but intolerable – convertibility risk?
Even if the ECB joins forces with the EFSF/ESM in buying government bonds its mandate, with price stability as the primary objective, will ultimately put a lid on the size of its interventions.
Draghi and Bernanke know that markets need to be talked up, and they continue to do so unapologetically.
I wouldn’t trust anything now until they have a program in place with the ECB.
Will Super Mario Save the euro?… (cartoon)
It’s time For Europe to stop screwing around.
I would like to call upon northern European governments to cease and desist from more ‘solidarity’ offerings to our fiscally-stricken, fast impoverishing nations.
I continue to believe that longer dated Spanish and Italian bonds are poised for a significant sell-off.
The ECB’s two LTROs had vastly lifted market sentiment and made refinancing at reasonable rates possible again for EU banks.
The ECB’s non-standard monetary policy measures were taken to deal with problems in the financial sector and not to extend monetary policy easing beyond interest rate cuts.
Mr. Draghi displayed great finesse in pooh-poohing the apparent rift with the Bundesbank regarding the volume of the LTROs.
Deutsche Bank Research commentary on Swiss FX policy, ETF regulation and the ECB.
Asides from giving Ponzi a bad name (at least until the ECB just admits that they are printing faster than even Big Ben) this is tying the banks and the countries ever closer.
As the ECB prints and the Euro declines and inflation rises, then what?