The ECB monitors the markets according to Christine Lagarde

The ECB monitors the markets according to Christine Lagarde
The ECB monitors the markets according to Christine Lagarde

“The President of the European Central Bank (ECB), Christine Lagarde, said on Monday that the institution was closely monitoring the situation on financial markets, while France’s sovereign debt is under pressure following the calling of elections anticipated legislative elections.

“We are attentive to the proper functioning of the financial markets,” she said during a visit to the headquarters of the French start-up Pasqal in Massy, ​​Essonne.

Five ECB officials told Reuters the ECB had no plans to discuss using its emergency bond-buying program to help France.

The president also reiterated the institution’s efforts to bring inflation back to its 2% target.

“Today as President of the ECB my objective is to bring inflation down to 2%. It may seem trivial when we look at the current political issues (…) If we let this inflation go while we are in the process of controlling it and we have started this third stage of the path of monetary policy, it is totally counterproductive,” she said. »

PEPP ready?

The PEPP is the “pandemic emergency purchase program” which is part of the APP which is the “asset purchase program” (asset purchase program in good French)! Bless you !!

Well basically it’s the ECB which buys assets that the markets no longer want (like bonds from highly over-indebted states) or at a prohibitive price.

The ECB “prints” money that it does not have to buy assets, generally debt securities or assets held by banks, to avoid either the bankruptcy of banks and therefore a banking crisis, or the bankruptcy of states. and therefore a sovereign debt crisis.

Obviously the ECB is not going to start by saying like the popular front “we shave for free”… even if in the end, it will not end up shaving for free.

By shaving for free, the money is no longer worth anything.

It’s a principle as old as time…

In reality there is nothing “free”… except the promises of politicians who only engage the poor people who believe in them.

Charles SANNAT

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To all subscribers to the STRATEGIES Letterthe file for the month of May is available in your reader areas here. It is dedicated to the stock market and stock investments. It is very important, even more so in the current context resulting from yesterday’s European elections where Macron decided to dissolve the National Assembly.

Our country (whether we are for or against is not the subject) risks entering a period of political turbulence.

Potential instability which can have repercussions on your assets, your currency and your liquidity.

Foreign and particularly American actions are a way of desensitizing yourself to the Eurozone, the Euro and the European Union. I explain everything to you in this file and I demonstrate to you the effectiveness of a very specific index strategy which will allow you to maximize what we call the return/risk couple. All the information to subscribe here.

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