by Andy Hoffman, Miles Franklin:
It’s Friday morning, and we have much to cover. Our primary topic is the collapsing Federal Reserve-fostered real estate “echo bubble,” but a case can be made for headlines from all corners of the globe. Thus, I’ll start with a global “horrible headline sampler,” commencing with the following, damning quote from “Goldman Mario” Draghi, from a conference yesterday morning…
The objective here would not be to defend the current stance, but rather to increase meaningfully the degree of monetary accommodation, The Governing Council is committed –- unanimously –- to using both unconventional and conventional instruments to deal effectively with the risks of a too-prolonged period of low inflation.
–Bloomberg, April 24, 2014
And there you have it. As we have warned for months, the ECB is preparing for the inevitable – likely imminent – launch of its OMT, or Outright Monetary Transaction QE program.
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