Bazooka Ben, Dragster Draghi, Just-Noise Yellen, choose whatever nickname you want.
For Draghi and his fellow ECB crew members our new suggestion is: Whatever-It-Takes Draghi.
Given the recent slowdown in the EU's biggest economy, Germany, this past week stocks took a hit. Even the seemingly-never-going-to-weaken euro dipped below $1.35.
Stubborn is as stubborn does. Earlier this year we suggested the euro's true value was somewhere around $1.20, a level Draghi and company probably pray for privately. We're not changing our view.
The 1.15% yield on the German 10-year bond is now solidly in second place in the bond-yield race to the bottom just behind Japan's 0.53% whooper. With a bit of imagination that makes the U.S. 10-year Treasury yield of 2.47% junk bond status in this crazy central bank induced milieu. To which most can only utter: Oh well!
Germany's IFO economic research outfit delivered a not-so-welcome blow last week to ECB President Mario Draghi and his central banking colleagues. Blaming in part geopolitics--as if they're ever new--the agency noted a headwind in July for Deutschland businesses for the third straight month.
Germany is the EU's locomotive. Now it faces another decision--sanctions against Russia. No small matter, this will put further pressure on Draghi as most likely his worst nightmare whatever-it-takes time has arrived.
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