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Draghi: Responding to a question of whether a rate cut is even conceivable considering the...

Draghi: Responding to a question of whether a rate cut is even conceivable considering the "broken transmission mechanism," Draghi says the ECB's use of non-standard measures (OMT) "speaks for itself." In other words, the bank believes a rate cut will be of little use, so don't expect one. So the dollar will remain more favored than the euro as the borrowing currency for carry traders?
Comments (2)
  • Brian Bobbitt
    , contributor
    Comments (1905) | Send Message
     
    "So the dollar will remain more favored than the euro as the borrowing currency for carry traders? "
    Doncha love a statement ending in a question mark? I wonder what news agency this author retired from.

     

    Capt. Brian
    The Lost Navigator
    4 Oct 2012, 09:34 AM Reply Like
  • dmarilley
    , contributor
    Comments (615) | Send Message
     
    When anything macro government becomes the market, I would say it is the End of the World. He (Draghi) has a PhD in economics and is taking a manipulative role, rather than doing the hard work of helping the Eurozone function as a coherent aggregate. That would actually involve making real decisions about how to stimulate productive activity rather than treating money like it is a drug. Ditto to the USA.
    5 Oct 2012, 02:38 PM Reply Like
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