Delayed Draghi
05/15/2014 | | ECB, econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, Euro, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, Mario Draghi, MLS, mortgage banking, Multiple listing service, politics and economics, Public speaking economist
With unemployment at 11.8%, GDP growth barely positive, inflation at a microscopic 0.7% and the ECB balance sheet a trillion euro smaller than it was in 7/12, Mario Draghi will finally engage in stimulative monetary policy. While buying sovereign bonds won’t happen, negative interest rates, purchases of bank loans and long-term loans to banks at low rates are likely. These steps will, at minimum, weaken the euro and boost exports.