Spain ‘Most Undervalued’ Stock Market, Tchir Says (Video)
Can the market go down while the Fed is engaged in QE?
There should be very little pretense among objective observers that last week’s perpetual QE announcement could actually provide real economic stimulation.
The catalyst for any retracement is likely QE off the table in the U.S., political rhetoric, or Rajoy screwing things up in Europe.
Since the outbreak of the financial crisis in 2007, Europe’s banks have been gradually retreating from the US market.
The developments should provide new reasons for investors and economy watchers to abandon their faith in central bankers as super heroes capable of saving the economy.
Draghi and Bernanke know that markets need to be talked up, and they continue to do so unapologetically.
Is there a clean shirt anywhere – creased, pressed and folded? We think so.
Duration mismatch is bad. It is fraud, it is unfair to depositors (much less shareholders) and it is certain to collapse sooner or later.
Europe’s three needs: a debt write-down, a real central bank, and a more efficient tax system.
The best hope for stabilizing the banking system is an equity capital infusion that is essentially converting German and French borrowing power into equity investments, followed up by more cheap lending to the banks by the ECB.
Our thoughts on the FAQ and what it means – decently positive.