Reply To: PM Weekly Market Commentary – 01/17/2020
The ECB will have to deal with the whole negative interest rate crisis they have created. They will be forced to allow rates to rise or all member states will have to agree to allow the ECB to adopt the same policies as in Japan — buy all government debt without limit.
Well here’s to hoping that Lagarde won’t be allowed to fire off Draghi’s bazooka printing press again and that rates are finally allowed to slowly rise, which would be just in time to put a dampener on the mind set seemingly switching wholesale from ‘austerity’ to a full on deficit spending splurge.
Highly likely I would say is kicking the can with Japan’s policies. It being 2020 you have to wonder how far this can can be kicked? Another 12 years?!?