This is getting sort of ridiculous. I think it’s evident to anyone watching Europe that they’re in a permanent state of QE. I recall writing about POMO and how America would be in QE for life, but we ended up half-assing our way out of QE. Look at Europe, just today announcing TLTRO-III — lasting thru 2021.
TLTRO-III is the third European bank lending program, offering bailout styled cheap rates to bedraggled banks living on their continent.
Rates go unchanged at 0% for marginal lending and -0.4% for deposits. European citizens are in a constant state of beatdown by their banks.
Part of this, of course, has to do with Italy entering a recession towards the end of 2018. Had Europe opted to reset their banking system and let them fail — perhaps they’d be healthier now. Alas, living in a world with zombified banks requires constant vigilance.
ECB President Mario Draghi said Thursday that there has been a “sizable moderation in economic expansion that will extend into the current year.”
“While there are signs that some of the idiosyncratic domestic factors dampening growth are starting to fade, the weakening in economic data points to a sizable moderation in the pace of the economic expansion that will extend into the current year.”
The only great market move, based on this news, is the euro sharply lower vs the dollar — now off by 0.5%
If you enjoy the content at iBankCoin, please follow us on Twitter
Since there is no way for countries in the Eurozone to rebalance their currencies those who are net importers from the others have to eventually run out of money. Efforts have been made to address that but it’s an imperfect system. Fiscal and monetary policy need to be linked.
Maybe Europe is to busy now… welcoming in ‘migrants’ and welcoming OUT terrified people?:
http://www.israelnationalnews.com/News/News.aspx/260033
MEGA! Amirite?
Silly me, sold shorts too early but bought the dipp, aa, gush, mu, wdc, wb, bidu, dwdp….
ECB can’t compete with Asia, sad how fortunes change..
Funny story, if your’re an accountant. I worked for Fiserv and Ferrari and Porsche were clients. The Italians didn’t even bother doing a month end closing of the accounts. Maybe it doesn’t matter when you sell or lease 2.5 cars on average each month. But if Porsche accounts were off a penny, hours of analysis had to go into figuring out why and fixing it. I’ll never forget being told, “The Germans aren’t going to like this!” I’m German-American, I understand, it made me laugh.It was when Italy and Greece were wreaking all sorts of economic havoc for the EU and the world back just before the ’08-09′ depression. I say depression as oppossed to recession. Just my opinion.