Draghi Just Pulled Out His Bazooka… How Long Before the Stock Market Crash?
By: Graham Summers
Jul 27, 2012
Yesterday, the markets exploded higher on ECB President Mario Draghi’s comments that the ECB stands by ready to do whatever is needed to hold the EU together
We’ve seen this exact same game plan before in 2008 when Hank Paulson claimed that getting a blank check from Congress to battle the US banking Crisis would be like having a bazooka: the markets would be shocked and awed back into functioning properly.
Setting aside the absurdity of an alleged capitalist claiming that government policy could scare the market into behaving properly, we all know that Paulson’s bazooka turned out to be a peashooter. Indeed, all he got for his efforts (combined with the SEC banning short selling on financial institutions) was about two months of market gains.