GS: ECB Preview

I agree that the ECB is ‘backing off’ and will only again engage if it gets bad enough.

Back to the analogy of watering the flower only when it’s about to die.

They don’t realize that it needs continuous watering in the normal course of events.

14 more days to the Greek payment date.

Unfortunately, looking like darned if you do and darned if you don’t.

ECB after the LTROs: It is up to governments now

After the implementation of the second 3-year LTRO last week, the ECB now is likely to believe it has done enough to stabilise the Euro area’s financial system and, implicitly, the funding situation for peripheral governments. Any announcement of further non-standard measures seems unlikely at this stage, as the Governing Council now views the ball as being squarely in the court of governments.