MBS Day Ahead: Draghi Obsessed With Emulating Childhood Hero

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Posted To: MBS Commentary

The Fed is the ECB President Mario Draghi's childhood hero (with 'childhood' being a metaphorical term for the infancy of the ECB's response to the 2008 financial crisis). Time and again , we've seen various forms of emulation. The Fed led the charge when it came to unprecedented stimulus efforts after the financial crisis, and it took the ECB years of growing pains and conflict before it was finally able to piece together its own semblance of Fed QE. Like the Fed, there are voices within the ECB that vehemently oppose(d) quantitative easing. And like the Fed, the will of the decision makers trumped the grumbling of the naysayers. In other words, German officials have consistently tried to block the ECB's easing efforts much like Fed hawks argued against QE and rate…(read more)

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