The market came to the very logical conclusion after Mr. Draghi testified before the EU Parliament last week that if the EU did its part to get its fiscal house in order the ECB would do its part from a financial perspective. Perhaps we read too much into the comments, but they seemed quite straight forward.
Makes you wonder why the Germanic shift in the last week. Some would say “they” got to him, they being the Germans…We may never know…
What we do know is that the ECB will be part of a quick-fix for the euro zone making any recovery that much more difficult.
