ECB Will Now Print Money Directly … But Why?

from The Daily Bell

European equities rose and peripheral bond yields fell on Friday on growing expectations of ECB action to bring down Spanish and Italian borrowing costs, but concerns about possible German opposition to such a move kept risk appetite in check. Euro zone governments and the European Central Bank are preparing to intervene on financial markets, French daily Le Monde reported, citing unnamed sources. The report came a day after ECB President Mario Draghi boosted risk assets across the globe with his pledge do whatever it takes within the bank’s mandate to defend the single currency. “Now all of a sudden everybody thinks he (Draghi) is going to start printing. He has backed himself into a corner, if he doesn’t come up with anything then he could be in trouble,” said Ioan Smith, strategist at Knight Capital. − Reuters

Dominant Social Theme: We will never surrender! We will fight them everywhere! Why? … We don’t know.

Free-Market News: The market has rejected the euro and the EU. Now Draghi proposes to reject the market. In a groundbreaking reversal, he has indicated he will print currency to buy eurozone sovereign debt.

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