It may not come at Jackson Hole on Friday, but massive and unprecedented QE is coming, of that you can be assured.
European sources are stating that the fact that Draghi cancelled his appearance at J- Hole on Friday is an indication that the Euro crisis with Spain is nearing a creshendo, and the ECB will be forced to announce a massive bailout of Spain before the week is out.
QE will continue to INFINITY….AND BEYOND!!! in Europe, the UK, and the US. The only alternative is complete debt collapse.
A Swiss credit source states: “We’re talking very, very big here: this is going to dwarf anything done for Greece, and it is going to make the bank 200% responsible for stopping the collapse”
The regions of Spain don’t come much more affluent than Catalonia. So the depth of Spain’s problem was made brutally clear this morning when the Catalans officially requested the full works – total bailout – hoping to apply for a cool €5.23 billion from Madrid. I understand that Mario Draghi knew about this last Friday, but it isn’t the only thing on his radar.
As The Slog posted two days back, Draghi has been playing a dangerous game of poker with Madrid; it now looks as if – unless he does something big, and soon – his bluff will be called bigtime. So much money was withdrawn from Spanish banks last month, the total overtook anything the EU has seen since Draghi’s ECB began collecting the data some fifteen years ago – before EMU was even a reality.
Although the markets seemed curiously calm in the light of these developments, my good source in the Madrid money markets was sanguine on the subject:
“Our view here is that either Draghi goes nap on solving the problem now, or the euro is history,” he told me, “so there’s no point in panicking just yet. If, however, he hasn’t moved by say Friday, well, people will get edgy. If he’d gone to Jackson Hole, we’d all have gotten very edgy.”
In fact, it turns out that the entire executive board of the ECB has cried off the Wyoming jolly. So something is very clearly afoot