Lord knows we love our quantitative easing here in the good old U.S. of A., so why should Europe be any different? Or so went the thinking yesterday when the ECB opened a credit facility that quickly reached the level of our original TARP scheme. Now it looks like the Euro is in for the same drubbing the dollar took. BNY Mellon's Simon Derrick explains that the only way to pay for this new QE is to print more money. Europe becomes more American by the day:
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The mix of socialism and keynesianism ruined the western world.
I object on principle, but if it stabilizes the Eurozone, it might be worth it. As somebody in finance, anything that reduces the anxiety banks feel about their European exposure is good for me.
Potentially, it could even ease credit markets domestically. It shouldn't cause the dollar to appreciate, so it won't hurt the trade balance.
I do worry, however, that this creates a moral hazard in the EU.
But it works in... Oh nevermind.
Another "creative" solution:
http://online.wsj.com/article/SB100014240529702040584045771087237775156…
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