- ECB Treaty embodies the tradition of the Bundesbank
- There has been no ECB discussion of capping bond spreads. yields
- Lending to IMF to send money back to euro area, not part of the Treaty, even on a bilateral basis
Draghi has pulled the rug out from beneath the notion that if the EU does its part, the ECB will buy bonds. That notion was very much built into prices. EUR/USD is sliding as the market reprices for a world without ECB bond-buying. This is a game-changer.
