The European Central Bank (ECB) decided to cut rates from 0.05% to 0% on Thursday. The ECB will also increase their monthly asset purchasing to €80 billion.
In today’s economy, the FIRE sector has hijacked governments and policy to favour it. Here’s the problem. Most its activities produce little genuine wealth.
Since February the US dollar gold price has not changed. And neither have many of the gold mining companies’ share prices.
Greece isn’t a concern and markets remain in a post European QE glow. But if Syzria pushes ahead with its plans to reduce Greece’s debt load, expect volatility to increase.
Surely the bulls in the stock market can’t keep the upper hand forever, right? Maybe not, but some high-profile bears are only just starting to get onboard with this rally…
The Greeks will have ready-made buyers. Even better for Greece is that the European Central Bank has said it will buy up to 30% of a national government’s debt.
Will the the European Central Bank be forced to print? I think the answer is yes. Eurozone banks are still unwilling to lend - because they're still in a huge mess..
The European banking system is in worse shape than it was in 2008. European banks hold 1.2 trillion euros worth of NPLs – that's double what they reported in 2008.