That was quick. With nearly 85% of the Brexit loss recovered in three days and the market now up for the quarter and the year, what’s not to like?
After all, the central banks are purportedly at the ready, and, in the case of the ECB and BOE, are already swinging into action according to their shills in the MSM. MarketWatch thus noted,
Markets were boosted by reports indicating the European Central Bank is weighing changes to its bond-buying program, while ‘the Bank of England also said they are all in,’ said Joe Saluzzi, co-head of equity trading at Themis Trading.
The European Central Bank is considering changing the rules regarding the types of bonds it can buy as part of its stimulus package to amid concerns it could run out of securities to buy under current stipulations, according to Bloomberg News. The report followed comments from Bank of England Gov. Mark Carney, who indicated the central bank is poised to further ease monetary policy to combat
Well now, by the sound of it you would think that the madman Draghi is fixing to uncork the mother of all QEs if there is a danger that the ECB will ‘run out of securities to buy’.
Who would have thought that the debt engorged governments of the eurozone couldn’t manufacture enough IOUs to satisfy Mario’s ‘buy’ button? In fact, with public debt at 91% of GDP you would think that the $12.5 trillion outstanding would be more than enough to go around.
This post was published at David Stockmans Contra Corner on June 30, 2016.
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