Resistance is futile, a Bank of America Merrill Lynch report noted. Based on the European Central Bank’s corporate sector purchase program – buying corporate bonds – free markets are no longer free. The “creeping influence” of the CSPP program can now be felt in almost 70% of eligible corporate issues. Liquidity has deteriorated and bunds with their negative interest rates, well they are just flat out “embarrassing” other investments.
“Magic people” can distort free markets for only so long
The power of ECB “magic people,” who at times operate above reproach, is evident when their logic is questioned. They, after all, have the PhD’s and they know better.
Core economic principles and...
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