He probably said “fuck, we’re all gonna die anyway”, just before lowering rates to a retarded -0.4% and increasing the size and scope of QE to include the purchase of corporate debt.
Source: BBG
The 25-member Governing Council, meeting in Frankfurt on Thursday, cut the rate on cash parked overnight by banks by 10 basis points to minus 0.4 percent, and its benchmark rate to zero. Bond purchases were raised to 80 billion euros ($87 billion) a month, starting in April, and corporate bonds will now be eligible. Draghi will hold a press conference at 2:30 p.m. local time.
U.S. futs are soaring.
European markets are soaring.
The euro is not soaring and is marching towards parity.
The currency wars continue.
If you enjoy the content at iBankCoin, please follow us on Twitter
Increasing QE may be the magnet that the decrease in the deposit rates need to really kick stocks into gear, but I really think if the ECB took the first step toward backing away from negative rates and boosted the deposit rate to even just -25bps that would go a much longer way toward normalizing market sentiment.
Lol all reversing
What I find amusing is the buying of EU based Corporate Debt starts in June, wonder if that was a play for the UK to stay in, “Hey UK, we will buy your Corporations Bonds if you stay and Play with Us”. Gold of course is in rally mode too. Best Tweet Ever… Ashraf Laidi ?@alaidi
The End of Central Banking .
Interesting idea but I feel like the reset to European rates has to be done by cataclysm now as opposed to the Fed normalization. At least well be able to see how the economies react to two different ideas on central banking.
Sounds very sexy and european.
2016 the year of the tangible….