ECB to buy “unlimited” quantities of bonds. Jobless claims down, though unemployment is still pretty bad. Everyone has a boner for Bill Clinton. Is this a real rally or unfounded hope?
the only rally i have seen is from bonds…
You mean the only rally you think *should* be happening?
Unlimited sterilized purchases just means that they will boost liquidity and prevent a run on the euro. There might be some reduction in sovereign spreads as a result, but it’s not a general increase in monetary stimulus. Hence, the broader impact on the Eurozone economy is likely to be more limited (i.e. they get the benefit from the reduced sovereign spreads, but not from a full-scale QE program).
Ok…dumb question. is this “bond buying” program actual monetary easing or is just debt bought by SPVs securitized by other debt?
It’s sterilized by selling German Bunds to buy Spanish (and soon Italian) bonds, so it’s not actually printing money. Problem is it’s impossible to have “unlimited” sterilized bond buying. Eventually you run out of stuff to sell. That’s going to happen and then you’ll have unfettered Euro printing.
Gold, gold, gold…
This is such a kneejerk bagholder rally. Obama Admin is going to try and rig Friday’s Nonfarmpayrolls.
Let’s do an over/under: ADP says 200,000. Tired of these bogus stats. Divide every number by two if it’s positive. multiply by two if it’s negative.
I think its good what the ECB is doing. They’re trying to stay together and that is one of the things they needed to do.
next will be to have a european banking union and a few years later the euro would have recovered stronger…
what is bothering most people is how long and drawn out the process is…investors really can’t stomach uncertainty…but that’s the euro way of life…better than being in India or China if you ask me…