by Jeffrey P. Snider
Alhambra Partners
The only immediate silver lining may be in the end the most fruitful of long-term prospects. Central bankers have done us a profound favor by overplaying their hand time and again. The catalog of false statements and expectations is long and getting longer. The ECB then assured “us” that this was different and that the LTRO’s, massive as they were, did not work because they weren’t QE. Seeing it described then in countless articles and interviews as something like magic, the speed with which it has unraveled leaves little doubt.
Still less than a year later, it is comical to see what a fuss was made back then when the ECB did nothing more than switch the method.