Draghi Says ECB Will Do What’s Needed to Preserve Euro: Economy
By Jeff Black and Jana Randow
European Central Bank PresidentMario Draghi said policy makers will do whatever is needed to preserve the euro, suggesting they may intervene in bond markets as surging yields in Spain and Italy threaten the existence of the 17-nation currency bloc.
“To the extent that the size of these sovereign premia hamper the functioning of the monetary policy transmission channel, they come within our mandate,” Draghi said in a speech at the Global Investment Conference in London today. “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro,” he said, adding: “believe me, it will be enough.”
Comment: There was little doubt on my side that in the end it would come this way. Draghi had to wait until things got really bad to come up with it without getting beaten up. His timing was good. Now the ECB will open the floodgates. It is only a matter of time until all of us will be millionaires and billionaires - maybe just by the money we'll carry in our pockets.