Thursday, January 22, 2015

ECB Becoming The Bagholder of the Bond Bubble

ECB pulls the trigger on more QE as expected.

Smart money, ignoring easy conclusions intended to placate the masses, will be unloading as much as the ECB will accept. As long as the ECB assumes the role as the buyer of last resort, it becomes the bagholder of the bond bubble, ECB poised to pull QE trigger on deflation.

The 60 billion euros a month plan will stimulate increasing dissent among member states when economic growth becomes just another broken promise. Dissent will grow as the Euro falls.

Headline: ECB agrees landmark sovereign bond-buy plan

FRANKFURT (Reuters) - The European Central Bank agreed on Thursday to embark on a quantitative easing (QE) programme, which together with its existing schemes will pump 60 billion euros a month into the euro zone economy from this March until September next year.

Countries under a bailout programme, such as Greece, will be included but with some additional criteria.



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