ECB Doubles Down on Financial Repression
We just posted a comment on the situation in the EU, where financial repression is still increasing. Big concern from my perspective is that negative rates and central bank market intervention seem to be frightening investors and convincing savers to abandon the financial system. Look at the earnings reports from UBS and the other large EU banks. Banks are 80% of the EU balance sheet and virtually all are shrinking. It is hard to envision how this situation does not end in tears for the nations of Europe given the policy mix.