BLAST OFF! ECB to Buy Bonds, Bundesbank Furious

  Google+  Twitter | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

European Central Bank President Mario Draghi has pledged to do whatever it takes to preserve the euro. In line with this, the ECB has agreed to a new bond-buying program on September 6, which Draghi says will “safeguard the monetary policy transmission in all countries in the euro zone area.”

Investing Insights: These 5 Big Banks LOVE Mario Draghi.

Draghi claims that fears of the irreversibility of the euro are unfounded. The new program should create a fully effective backstop and lower the borrowing cost of struggling euro zone countries. The ECB would buy debt in the open market with a maturity between one and three years.

Deutcshe Bundesbank chief Jens Weidmann, who opposes the plan, has considered resigning in light of the move. However, European and U.S. stocks have rallied strongly after the announcement.

How will this affect stocks going forward? Let us separate the forest from the trees for you in our newest Wall St. Cheat Sheet newsletter.

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business