Category Archives: ECB

ECB proposals to buy loans to households and companies

This is highly problematic. If the ECB takes the risk, there is extreme moral hazard. If they don’t, lending won’t likely increase: ECB poised for battle to ward off deflation January 26 (FT) — Mario Draghi has signalled that he … Continue reading

Posted in ECB, Inflation |

More on EU Private Sector Credit Expansion

ECB Says Bank Loans to Private Sector Shrink Most on Record By Jeff Black July 25 (BN) — Lending to companies and households in the 17-member euro area fell the most on record in June in a sign the region … Continue reading

Posted in ECB, EU, Uncategorized |

Draghi – “OMT is meant to keep sovereign yields just under panic levels”

‘OMTs are designed to keep government bond yields just below ‘panic’ levels, as previously defined, not to bring them down to levels that would somehow help government solvency.’ Strengthening financial resilience

Posted in ECB |

placebo’s doing their thing

As previously discussed, financial placebos like QE do cause market participants to alter behavior out of either a misunderstanding of the actual fundamentals, or in anticipation of reactions by others presumed to be misinformed. And while the effects of these … Continue reading

Posted in ECB, Equities, Fed, GDP |

Market Watch

Radical fixes needed to make the euro work Commentary: Warren Mosler has a plan but no takers By Darrell Delamaide May 8 (MarketWatch) — If youre ever tempted to think the euro zone has turned the corner and is on … Continue reading

Posted in Currencies, ECB, EU |


If anyone can get a message to him, please tell him that, functionally, negative rates are just a tax on deposits that ultimately reduces spending/output/employment, much like the PSI did in Greece and whatever you want to call the ‘deposit … Continue reading

Posted in CBs, ECB, EU |

Germany’s Ifo Drops in April, Raising Odds of ECB Cut

And a rate cut only makes it worse, as per the interest income channels: Germany’s Ifo Drops in April, Raising Odds of ECB Cut April 24 (Bloomberg) — Germany’s Ifo index dropped in April, in a further sign that Europe’s … Continue reading

Posted in ECB, Germany |

Thaler’s Corner 04-22-2013 2013: And now?

Again, very well stated! Thaler’s Corner I must admit that I am at a loss for words these days. The analytical items at our disposal describe a situation so complex, given a myriad of contradictory influences, that I find it … Continue reading

Posted in ECB, EU, Housing, Interest Rates, USA |

Draghi Considers Plan B

Yet more proposals that won’t work. The problem remains: Deficits are too small while they all think they are too large. Draghi Considers Plan B as Sentiment Dims After Cyprus Fumble By Jeff Black and Jana Randow and Stefan Riecher … Continue reading

Posted in ECB |

Cyprus proposal detail

Proposals from earlier today: ECB guarantees deposits for .25% annual fee ECB takes over regulation, supervision, enforcement of banking regs etc. This becomes the model for regulating all EU banks I finally got a quick minute to add some color … Continue reading

Posted in ECB, EU | Tagged , |