“I’m hard pressed to see the rationale for further monetary stimulus,” Lacker told reporters after a speech.”
To which Benjamin Cole commented:
Yeah, he is hard-pressed. I am reminded of a guy in a Three Stooges clip who has his head “pressed” by a garment-pressing contraption. Lacker is that guy.
“Earlier, a modest rally in stocks evaporated after European Central Bank President Mario Draghi made cautious comments on the state of Europe’s economy. Mr. Draghi said the region’s economic outlook was subject to “high uncertainty” and that substantial risks remained. He added that the central bank was trying “to do its best” to avoid a credit crunch stemming from the lack of funding banks are facing in the euro zone.”
Yes, he´s doing his best but in another direction altogether:
“Mario Draghi has learned much from the Germans, as he is proving by once again spraying cold water on everybody’s hopes for an immediate cash bonanza from the ECB.”
“Draghi, talking to the European Parliamentary Commission this morning, has produced the following series of Dow Jones Newswires headlines, which do not exactly ring with the sound of soaring Money Helicopters:”
Draghi: Monetary Policy Can’t Do Everything
Draghi: Losing ECB’s Credibility Wouldn’t Help Mkt Confidence
Draghi: EU Treaty Forbids Monetary Financing
Draghi: We Want To Act Within The Treaty
Draghi: Any Move Breaching Treaty Would Hurt ECB Credibility
Draghi: ECB Must Boost Financial Stability Without Weakening Its Credibility
Here’s the most glowing praise he can muster:
Draghi: Latest EU Summit Package Isn’t Negative
You hear that? It isn’t negative. Break out the champagne.
Update: More Bits&Pieces:
FRANKFURT—The existence of the euro zone is “irreversible” and speculation about its breakup is “morbid,” European Central Bank President Mario Draghi said Monday.
“I have no doubt whatsoever about the strength of the euro, about its permanence and its irreversibility. The one currency is irreversible,” Mr. Draghi said at his first hearing of the European Parliament’s Committee on Economic and Monetary Affairs since he took the helm of the ECB Nov. 1. A break-up of the currency union would have extraordinary costs, he added.
The ECB welcomes the latest decisions by European Union heads of states and governments for sound and transparent fiscal rules, as the “new fiscal compact is an essential signal, showing a clear trajectory for the future evolution of the euro area,” Mr. Draghi said.
Now, that´s being MORBID!