From Strategy of Simone Wapler (FRANCE)-
The mission of Mario Draghi (ECB) is to create a “good little infation”. Small enough that no grumbling and good enough to eat away debt.
Result: there is no inflation and growth prospects are more than hills.
Hence the decision to buy corporate bonds-rated.
My British colleague Dan Denning wrote a very well made notes about it. Here is a summary:
- Operation Starting June 8
- Budget (counterfeit currency): 80 billion €
- Eligible companies: credit rating investment grade , euro-denominated bonds, a company of the countries in the euro zone.
This is an attack against your savings. Counterfeit currency is created so that major European companies can borrow for free. As for you, if you want a small return, you just have to assume more risk.
***Dijsselbloem is the President of the Eurogroup and the Dutch Minister of Finance. The France annoys with its deRcits and does not understand why the Commission is Rrm with small countries. It would be naive The Batavian? France is too-big-to-bankruptcy; Furthermore, whatever the debt if rates are zero for all eternity! The bankruptcy of France will be consumed by insolvency if interest rates rise and Mario is working to ensure that they do not rise. Meanwhile, everything is going …
*** As said repeatedly, most rates are low most everything is paid expensive . So real estate is adds.
*** Well, well, bizarre and strange: US banks are not going that well . The Wall Street Journal to be in need of more capital.
*** The Financial Times looks at the last indicator in fashion in the establishment and the City; it would anticipate the Fed’s moves.