The European Central Bank (ECB) has moved again to stimulate economic growth in the euro area by cutting interest rates and bolstering its quantitative easing (QE) programme.
The Bank said it was to expand its bond-buying to €80bn per month – up from €60bn – to help improve money supply in the economy. It also trimmed its overnight deposit rate further into negative territory to -0.4% in a new bid to encourage bank lending by charging lenders more to deposit cash with it.
Translation: Desperate times call for desperate actions. Nothing is working and ECB is starting to freak out. That forced Draghi to go all in and blow his proverbial “Bazooka”.
And the result? Well, the Dow futures are up a laughable 120 points as of this writing.
You want to know the truth. Here it is. Former FED President Richard Fisher finally admits to what I have been saying here for years.
We injected cocaine and heroin into the system to enable a wealth effect and now we are maintaining it with ritalin. The Fed is a giant weapon that has no ammunition left.
Insanity….Here, watch for yourself…..
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