by The Daily Bell:
European equities rose and peripheral bond yields fell on Friday on growing expectations of ECB action to bring down Spanish and Italian borrowing costs, but concerns about possible German opposition to such a move kept risk appetite in check. Euro zone governments and the European Central Bank are preparing to intervene on financial markets, French daily Le Monde reported, citing unnamed sources. The report came a day after ECB President Mario Draghi boosted risk assets across the globe with his pledge do whatever it takes within the bank’s mandate to defend the single currency. “Now all of a sudden everybody thinks he (Draghi) is going to start printing. He has backed himself into a corner, if he doesn’t come up with anything then he could be in trouble,” said Ioan Smith, strategist at Knight Capital. − Reuters
Dominant Social Theme: We will never surrender! We will fight them everywhere! Why? … we don’t know.
Free-Market News: The market has rejected the euro and the EU. Now Draghi proposes to reject the market. In a groundbreaking reversal, he has indicated he will print currency to buy euro-zone sovereign debt.
Mario Draghi, president of the European Central Bank (ECB), will do “whatever is necessary” to ensure a solvent euro. Draghi made the comments at an investor conference at the Olympics. Professional investors like John Fox, director of research at Fenimore Asset Management, believe it may mark a turning point in the four-year old crisis.