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Draghi press conference: "Money market funds are starting to return, and they were the first to...

Draghi press conference: "Money market funds are starting to return, and they were the first to fly away," says Draghi, calling the LTROs an "unquestionable success" that has removed tail risk. LTRO 3? The "ball in is the court of the governments and banks" to support the recovery.
Comments (2)
  • User 462216
    , contributor
    Comments (95) | Send Message
     
    Now if we could only get money to consumers so that we can get that pesky little thing called demand up to drive jobs and taxes and investments....yada yada yada. I know we can raise the credit limit on everybodies credit card. That should do it. If I could only get and equity line on my three houses I know I could contribute more to this economy.
    8 Mar 2012, 10:31 AM Reply Like
  • Deja Vu
    , contributor
    Comments (1100) | Send Message
     
    This man actually believes that monetizing massive amounts of debt merely by laundering it through banks is a "unquestionable success".

     

    If it was such a success then pray why did he need to do it at all? Are they able to sell a single bond beyond the 3 year window? No one knows and the answer is that ECB is directly buying bonds that extend beyond the LTRO window. This guy is basically a Madoff.

     

    Watch out for the LTRO of next year, when again all of the European welfare states will need another dose of money since they would not have cut spending.

     

    He basically believes he can increase M1 and M2 indefinitely via monetizing welfare schemes laundered through banks without inflation. As the size of the money supply and ECB balance sheet grows, the credibility of the ECB shrinks ten times as fast. Once the credibility goes, hello Weimar Germany.
    8 Mar 2012, 01:27 PM Reply Like
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