I don’t know if Mario Draghi’s “historic” quantitative easing program announced Thursday will do anything to help the flat-on-its-back euro zone economy.
I’m not a trained economist, so I’m not sure exactly how buying massive quantities of already overpriced bonds is supposed to raise inflation and boost the economy, although it has been very successful in devaluing the grossly overpriced euro. But how is a cheaper currency going to help countries in the euro zone when they do most of their trading with each other?
What I am sure of is that the program will make U.S. Treasury and corporate debt securities a lot more attractive to investors, further lowering long-term interest rates here, and giving our economy, now the envy of the rest of the world, another boost.
It’s about time Europe did something for us. Continue reading "Thank you, Mario"