It was going to be the big rescue day in Europe. All eyes were on the ECB and expectations had increased that something coordinated with the EU would be announced. ECB went alone and the market is shocked. ECB boosted QE, added liquidity tools, allowing banks to breach capital pillars and offered new long-term loans. No rate cut but that was meaningless anyway, but Lagarde said that rates could go lower if deemed necessary. But the main message on the press conference from the ECB President was that an ambitious and coordinated fiscal response was needed. Here lies the policy mistake from Europe. The COVID-19 is ... (full story)