Draghi Has Lost It Completely

Jon Banking, Economy, Fiscal Policies, Government, Market Commentary

The European Central Bank (ECB) announced it will decide in the coming months whether monetary policy should be eased any further. Clearly, Draghi is completely losing control for he cannot entertain the remote possibility that negative interest rates will only cause hoarding and capital flight, and not stimulation. People only borrow when they see an opportunity. They do not borrow like governments with no rational thought whatsoever.
In the coming months, Draghi said a better assessment of the situation would become possible.

This post was published at Armstrong Economics on Jul 21, 2016.