Draghi Has it Backwards A director at a global financial company with offices worldwide pinged me in response to my post ECB's €40bn Stimulus Gamble: ECB Pulls Out Bazooka, Cuts Rates, Buys Assets; Will this Stimulate Lending?. Hello Mish,
As we have vociferously warned since September 2011, and most recently as the Cyprus debacle exploded explained why it is just beginning, Germany's Council of Economic Experts (or so-called 'Five Wise Men') just confirmed a wealth tax is coming.
While everyone likes to hate on Cyprus, it is Italy that is the focal point of today's European "omnishambles" that has seen the EURUSD tumble to a five month low as of this writing. First it was economic data that scared investors, with Industrial Sales and Orders tumbling far below expected, posting numbers of -1.3% and -1.4%, respectively, on expectations of an increase. Retail sales were just as ugly, declining by -0.5% in January, on expectations of an unchanged print, with the December 0.2% number revised also into negative territory.
The surging Euro — which is at levels not seen since late 2011 — is one of the biggest stories in global financial markets. Analyzing the factors driving the Euro has become something of an obsession. Morgan Stanley FX strategist Hans Redeker offered his explanation of why the Euro's been to strong in a recent note. He offers a few basic explanations.
FINalternatives submits: A key European Parliament committee has approved the European Union’s controversial hedge fund regulations, but have set up a battle with the bloc’s finance ministers at the same time.
John M. Mason submits: The economic spokesperson for the Obama administration, Ben Bernanke, and the Federal Reserve System continue to underwrite “big”…Big Companies and Big Banks. The Federal Reserve has just released its survey of senior credit officers. The headlines, “Large United States Banks are Starting to Ease Credit Terms.” Terrific!