At the same time if the US Fed is really 'data-driven', then they should be raising rates next week.
A few hours out, it doesn't look like the markets are much impressed with Draghi's bazooka. Maybe that is because he warned that he doesn't expect to shoot it again.
Hopefully one day economists will recognize that a model is only as good as its underlying assumptions, and that if empirical evidence doesn't match with your predicted outcomes that the problem isn't that the world has gone mad, but rather your model is useless for the current situation.
Isn't the fundamental tenet of economics that every school before yours is 100% wrong-headed, full of shit and the proximate cause of all world misfortune? I mean, Jared Dillian is railing this morning about how Abenomics proves that The New Deal caused the Great Depression to last 16 years.
I think it's because Draghi has become entirely predictable and entirely bully-able. We've got to be getting to the point where consensus holds the central bankers will keep shoveling money in until they lose the ability to do so, at which point the whole thing comes in for a hard landing. When that's the perspective, "shoveling money" means nothing more than business as usual.
Yes. No doubt. I was saying to kuli that I think this move makes the US Fed more likely to raise next week. I am sure there is a psychological independence factor at work. Interesting that the ECB will be buying non-banking corporate bonds. No moral hazard there.