mario draghi

Inflationary Overheating, Tapering and Terminating QE, We’ve Seen These Before And It Didn’t End The Way It Was Supposed To

By Jeffrey P. Snider|2021-12-30T12:23:09-05:00December 30th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The economy was in danger of running hot, too hot they all said. In order to stay ahead of such inflation potential, as central bankers saw it, first it would be necessary to wind down quantitative easing. Taper then terminate. After that, rate hikes.Hawks buzzing around everywhere.But Mario Draghi’s ECB had a problem. The inflationary pressures were there, he reasoned, [...]

Behind The Inflation Curtain (Europe)

By Jeffrey P. Snider|2021-07-26T18:18:58-04:00July 26th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

When the ECB’s leadership presented their first QE to the assembled media on March 5, 2015, there was a lot of the usual corporate-speak. It sure wasn’t fedspeak, the purposefully obfuscating wordsmithing of the kind made infamous by Alan Greenspan. No, on this occasion, to the contrary, Mario Draghi, the ECB’s President, wanted to be perfectly clear in what he [...]

Even The People ‘Printing’ The ‘Money’ Aren’t Seeing It

By Jeffrey P. Snider|2021-02-04T19:37:46-05:00February 4th, 2021|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Everyone in Europe has long forgotten about what was going on there before COVID. First, an economy that had been stuck two years within a deflationary downturn central bankers like Italy’s new recycled top guy Mario Draghi clumsily mistook for an inflationary takeoff. Both the inflation puzzle and ultimately a pre-pandemic recession have taken a back seat to everything corona.Whereas [...]

Super More Perfectly

By Jeffrey P. Snider|2021-02-03T19:51:22-05:00February 3rd, 2021|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Mario Draghi is back to save Italy by now running it. Like Janet Yellen resurfacing at the US Treasury, these people are thought of in the most positive terms simply because the public remains blissfully unaware of basic data. Not without good reason; the public had for decades come to count on central bankers (for all anyone knew) to keep [...]

Saving Jobs Won’t Save Us From Jaws

By Jeffrey P. Snider|2020-12-01T17:08:59-05:00December 1st, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Mario Draghi’s sunset retirement festivities weren’t supposed to have gone off this way. Celebrated for his July 2012 “promise” to save the euro, he instead spent the entirety of his eight years as President of the ECB chasing inflation and recovery, the very things meant to accomplish the euro’s saving, without success. By the end, his final act in September [...]

Why Aren’t Bond Yields Flying Higher Globally? Exhibit A: Germany/Europe

By Jeffrey P. Snider|2020-09-29T17:45:02-04:00September 29th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Mario Draghi was a very polarizing figure for him to be atop a central bank that has no natural constituency. Sure, there is a European Central Bank but there remain National Central Banks which had retained their own powers and influence following the monetary union. Draghi’s approach rubbed critics the wrong way, a growing legion of them, a lot of [...]

Would The Real Dollar Please Stand Up

By Jeffrey P. Snider|2020-07-27T19:46:53-04:00July 27th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

On December 3, 2015, Europe’s central bank, the ECB, supposedly disappointed markets especially those trading European equities. Losses were large because Mario Draghi’s gang of policymakers merely extended its first QE rather than accelerating the pace of purchases. Investors, such as they were, had been told to expect more than that. To make matters worse, according to the mainstream narrative, [...]

When Sentiment Flies

By Jeffrey P. Snider|2020-06-17T19:12:52-04:00June 17th, 2020|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

According to Germany’s ZEW, economic prospects for the intermediate future in that country (and for Europe, separate survey) haven’t been this positive since 2006. Back then you might remember the rip-roaring contributions of asset bubbles, and I don’t mean the stock market and valuations. A huge wave of credit expansion in pretty much every corner of the globe courtesy of [...]

Ring, Ring, Hündchen

By Jeffrey P. Snider|2020-05-19T16:02:24-04:00May 19th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

They really do seem to love Jay Powell’s announcement effect, these Germans. Magic words, no relation to what’s actually done only what’s said. Confirming in every way what I wrote yesterday, the psychology of money-less monetary policy being acted out exactly according to the plan. Central bankers do, those trained by Economics schools respond in predictable fashion.Pavlov is in awe [...]

Miracles Aren’t Shovel-Ready

By Jeffrey P. Snider|2020-05-13T19:39:50-04:00May 13th, 2020|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

The monetary mouse. After years of Mario Draghi claiming everything under the sun available with the help of QE and the like, Christine Lagarde came in to the job talking a much different approach. Suddenly, chastened, Europe’s central bank needed assistance. So much for “do whatever it takes.”They did it – and it didn’t take.Lagarde’s outreach was simply an act [...]

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