I came across to news articles that made me think that it is just a matter of time before the euro zone joins the Fed in quantitative easing.
Firstly, in this Bloomberg article we learn that the ECB is refusing to disclose internal documents showing how Greece used derivatives to hide its government debt. This tells me that the ECB, like the Fed, is sitting on toxic assets.
Secondly, in this MNI article ECB President Jean-Claude Trichet refused to make any negative comment on the Fed's QE 2.0 decision. "We have our responsibility, we have our mandate ... We are faithful to our mandate," "No further comments on what is done by other central banks, who have their own responsibility, their own environment." I think the reasons for his comments are because he to will have no other choice but to introduce a QE program of his own.
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