Without QE, “Eurozone Financial Markets Would Collapse”

The euro dropped to the lowest since 2005. The ECB has imposed negative deposit rates to flog savers until their mood improves. It has flooded banks with free liquidity. Despite the Eurozone’s economic issues, stocks have soared in recent years. As have government bonds to where yields are near or below zero. It’s precisely this environment that the ECB wants to douse with even more liquidity by printing more money. It won’t accomplish anything for the economy. But that doesn’t matter. Banks and big market players are clamoring for it. And the ECB is “a prisoner of financial markets’ expectations.”

Read…   Without QE, “Eurozone Financial Markets Would Collapse”