ECB QE. Finally.

Borrowing a page from the CFO playbook, yesterday the ECB sandbagged things by leaking news of a 50B euro/month QE program to be announced this morning. It then provided a “beat” by announcing a 60B euro/month QE program at 8:30am this morning. Can you tell that ECB President Draghi used to work for Goldman Sachs?

SPX futures took the news in stride this morning. Not a lot of evidence of risk-on partying. This is not good for equity bulls….

The 60B euro /month will be a mix of asset-backed bonds, covered bonds, and sovereign bonds. I don’t see this stopping the M3 money supply from contracting.