Euros are in motion ...
Finding safe haven.
The ECB QE is too little and too late.
Quote:
Importantly, it now looks as if National Central Banks (NCBs) will be responsible for purchasing the assets and will bear the risk ? as opposed to the ECB balance sheet, which is usually the case for monetary policy operations. This is to counter concerns about the pooling of fiscal risk via the ECB ? ultimately, all Eurozone states underwrite the ECB balance sheet so would jointly backstop any sovereign debt purchases. In practice, this should not have a huge impact on the way the programme works ? the money will still be injected into the Eurozone economies. It does raise question though about the single monetary policy in the Eurozone and highlight the constraints under which the ECB operates. [Update - further points here, if an NCB did not want to continue to purchase bonds the ECB would be unlikely to be able to compel them to do so. While this is unlikely it could arise since some NCBs are staunchly opposed. It could also become important from a legal standpoint as it would make it easier for a single NCB to remove itself from the programme if its National Constitutional Court ordered it to do so.]
Wrong To Assume Quantitative Easing Will Be As Effective In Eurozone As Elsewhere - Forbes
|
Too little and too late so the money moves to a safer place -- the Swiss just opened the floodgates. The EU won't collapse nor will the Euro but the entire EU will continue to be indecisive and dysfunctional.
"In my opinion, it will not cease, until a crisis shall have been reached, and passed. "A house divided against itself cannot stand.""
... Abraham Lincoln