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?
Europe has no time left in its hourglass. It must act now. What it needs to do is to empower the ECB to issue its own (euro)bonds.
Perhaps the prospect of currency competition would result in more cautious monetary policy by the ECB.