The upside is fake stability. The downside is too ugly to contemplate.
Before the Elections and despite Bank of Mexico’s “monetary shock.”
Even Italian banks are dumping Italian government bonds.
Draghi’s twisted bailiwick produces a WTF chart.
More than just a few “fallen angels.”
What will Draghi do?
The Fed and the ECB believe they can tighten and taper without killing the market so long as they jawbone this constantly.
“We act like we know exactly how it’s going to happen, and we don’t.”
And this might become a problem for the Fed.
July rate hike for Canada is “in the bag.” Bank of England, ECB are scrambling.