Irrational Draghi Exuberance – by Stephen Lendman
Thursday was Draghi day. He explained what ECB watchers knew. At his Frankfort press conference, he said Governing Council members agreed to unlimited bond buying. It’s called Outright Monetary Transactions (OMT).
Bundesbank President Jens Weidmann alone dissented. He called Draghi’s plan “tantamount to financing governments by printing banknotes.” Doing so creates more problems than solutions.
In late August, Weidmann said bond purchases were “too close to state financial via the money press for me. The central bank cannot fundamentally solve the problems this way. It runs the risk of creating new problems.”
OMT will target government bonds
Article source: http://mostlywater.org/irrational_draghi_exuberance