The spectre of DEFLATION hangs over the world's developed economies despite the massive Quantitative Expansion (QE) of the global money supply by Central Banks. Too Big Too Fail institutions have filled their boots and stuffed their balance sheets with cash to cover their bad and not-marked-to-market-yet assets and to meet increased regulatory capital reserve requirements. This morning’s survey by #Bloomberg tells us what ‘investors’ think. But these are same people who blindly invested in collatorised Debt Obligartions and hooky mortgage derivative instruments that brought the system to its knees in 2007/08. If Draghi listens and responds to them, he is likely to move to an even more aggressive QE as the news box above shows. Are we doomed once again to a financial crisis worse than the one we just had?
Deflation, Draghi, Déjà vu
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Concise Ballsy Thinking as the latest news rolls off the ticker tape. (Er, if you are under 20, Google it!)