While they bicker the Zone flounders

Travis links to a piece that would make the deviousness of Frank Underwood (of House of Cards fame) look like child´s play!:

In early October, European Central Bank board member Benoit Coeure paid a discreet visit to the Chancellery in Berlin to express concerns about rising criticism of the bank from German politicians.

The Frenchman, one of ECB President Mario Draghi’s closest allies in Frankfurt, hoped for reassurances that the bank bashing, led by Finance minister Wolfgang Schaeuble, would stop.

But the message from Chancellor Angela Merkel’s advisers was not entirely comforting, according to one official familiar with the discussion.

Merkel would continue to refrain from questioning the ECB’s policies in public. But the broader backlash would be difficult to contain, especially if Draghi pressed ahead with unconventional measures to bolster the European economy, for example buying mass quantities of government bonds.

“Then you would see a real debate,” a top German official told Reuters on condition of anonymity. “Public criticism in Germany would take off.”

At the end:

Earlier this month, Hans Michelbach of the Bavarian Christian Social Union (CSU), the top conservative in the Bundestag’s finance committee, went so far as to label Draghi’s appointment to the top ECB post a “mistake”.

Meanwhile, the real people in the real world weep!

Drag it down

HT Becky Hargrove

6 thoughts on “While they bicker the Zone flounders

  1. Marcus,

    I find that story incredibly distressing. But also notice that it was published on Thursday. Despite the news, U.S. stocks somehow kept climbing higher and higher. The buoyancy of U.S. stocks this week is a little hard for me to understand…….

    • Travis, over the past 5 months the S&P has just done wide swings and is basically now at the same level of June 2. So stocks have not been climbing higher and higher, There were also recent spikes in the Vix index of market volatility.

  2. I’m not sure what this means, but the Hong Kong Hang Seng Index is trading at about six to seven times forward 12 months earnings.

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