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Mario Draghi's "Still Thinking About QE" ECB press Conference - Live Feed
No change... no change. Draghi's back and, just like RBA's Stevens last night, is ready to talk (but not jawbone) his currency down; explaining that any day now we might - just might - unleash a treaty-busting monetization of more debt that won't actually reach the real economy but will provide more ammo for carry-traders to leverage longs in peripheral nations sovereign debt. Since the last ECB NIRP unleashing, things have got worse for Europe... but it will take time we are sure... just wait until H2 2014...
Why Draghi's snookered... the real costsof borrowing is practically unaffected by Draghi's actions...the transmission mechanism is broken
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that's how I like Draghi: talking and still thinking. even, or particularly, if he is still thinking about QE (way better than having QE)
meanwhile, the ECB's balance sheet is shrinking. not that anybody should notice, look away
re NIRP: sorry, megabanks! unleash your lobbyists on this, if you can
re transmission mechanism: are you sure there is any willingness to borrow more? in the Spanish case, for example, the biggest hurdle is that most needed loans are in the 30'000 EUR range, by very small companies. a failure of retail banking? or just an adaptation to the Anglo American banking model, where business loans are nearly extinct and this kind of loans are seen as private/personal? I'd prefer a committment back to the old continental retail banking model, but I see little political willingness. bundling them in securitization schemes, even when "plain vanilla", does not look to me as a solution
In summary, these guys are making up monetary policy on the fly.
There is no science.
on the fly? what do you think, that we found the EUR under a rock? science is a loaded word, won't go there
Translated: The winding down Fed told him "the checks in the mail" and Mario is saying "I haven't fucking got it yet!!!"
Jim Ricktards and others may adulate Draghi as being " the only central banker who understands central banking" and "the master of saying a lot and doing nothing" but the f****r is still a Godamm Sux stooge who is stealing the savings of my family and robbing the pension funds to prop up the insolvent banks.
I see you still have your cute avatar. makes it a cousin of mine
I don't care if he was one of the Squid Academy alumni. yes, the ECB is hurting savings, and the situation does not help pension funds
but do we have alternatives? left alone, the 18 currencies would all be satellites of the USD, at this point of the currency wars. or we would have had intra-european currency war devaluations, where both your savings and pension funds would have looked worse
what the heck can europe do when China and the US are fighting on the monetary level? if we had serious, normal rates, we'd have bank bankruptcies and/or a huge influx of foreign "hot money", with further destabilizing consequences. we don't live in a vacuum. the FED and the Bank of China set the tune
They have NO Fucking mechicism to print...No way to increase M2
Useless chatter box. What does he produce to better mankind?
Exactly!