Draghi Goes Full Kuroda

Well the headline really says it all. Draghi pulled out the bazooka and shot off a full backpack of rounds, too many to bother listing here. More QE, more NIRP, more LTRO etc. etc. etc. Oh and by the way, he’s now buying corporate paper. Can ETFs be far behind when even more desperation sets in?

And of course stock markets are eating it up. Bonds, not so much.

I feel as if I have been transferred into a kind of looking-glass universe, where down is up, right is left and insanity rules. These guys think they are so smart, but they are totally incapable of rational analysis because they are locked into a belief system that they dare not question. Their belief system allows them to act with confidence, but if it were to be taken away they would not know what to do. So they ignore any outcomes of their actions that challenge the belief system, even as the world economy circles the drain, being flushed down by the flood of liquidity that they are pumping.

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