Super Mario’s supermarket escapades provide clues to QE
European Central Bank president Mario Draghi was worryingly late to the January press conference at which he announced the central bank would be embarking on full scale quantitative easing, but pictures released on an Italian website give clues as to why.
Italian pap site Oggi last week published pictures of Draghi, dressed to the nines, at a supermarket picking up various sundries. A shot of Draghi walking away with his humble purchases reveals the man is wearing the very same white forward-point collared dress shirt and blue tie he wore when announcing QE on January 22.
Perhaps a close look at the snacks and toiletries he bought that morning will give a clue as to what sorts of assets the ECB plans to expand its balance sheet with? Could toilet paper indicate the ECB will buy senior unsecured from top European banks with high loss absorbency? Perhaps we’ll need to wait and see until the programme is fully rolled out.
That’s enough speculation for today. Next week: is the Bundesbank going to clone Jens Weidmann with the aim of placing his doppelgangers in key national central bank positions across the eurozone?