Thread by @gbponz

THREAD: The greatest irony is this: Imagine that instead of "whatever it takes", the #ECB had told the politicians imperiling the #EUR this: (/)
@nglinsman @amlivemon @pboockvar @amlivemon

https://twitter.com/dlacalle_IA/status/1359545350403555329

In that case, government bond yields would have been the cushioning variable, instead of #ECB balance sheet. BUT, that in practical terms transfers money from the government coffers to savers.(/)

Conversely, when and if a savvy managers takes power, he gets a DOUBLE positive whammy: State P&L improves, and then improves again due to lower debt service costs.(/)

Now, the opposite is true: If by some miracle a rainmaker sets Europe right, rates SHOULD normalize, as in 2% inflation + 2% real rate = 4% , and that would increase debt service costs materially. (/)

So, seeing Draghi trying over here is quite a hoot.