Friday, June 06, 2014

NIRP Has Arrived: Europe Officially Enters The "Monetary Twilight Zone"


Hoosier's note: With NEGATIVE Interest Rate, the banks, in the Euro Zone, will be forced to put money to use.

Last night, the EURO plunged after the announcement by Draghi but EURO subsequently rebounded.

My guess is that the market thinks that if the banks in the Euro Zone were to put money to use, assets will be inflated in Europe and they would want to participate and hence bid up the EURO.