by Mike “Mish” Shedlock
MISH’S Global Economic Trend Analysis
On September 4, ECB President pulled out a financial bazooka including a pledge to build up the ECB’s balance sheet by another €1 trillion.
Draghi confirmed the asset purchases would “include the real estate, the RMBS, real estate ABS. It would also include a fairly wide range of ABS containing loans to the real economy,” but only “the senior tranches, and the mezzanine tranches only if there is a guarantee.”
Now, just three weeks later, he wants to buy outright junk, presumably without guarantees.