I’m just starting to go through the blogs & tweets written after yesterday’s ES session (the 6th Sep.).
I am waiting to see Draghi’s actions in committing to European bond purchases out to 3-yr maturities labelled as “QE3”, or some such (or at least taking the place of QE3). I haven’t seen such references (yet, at least) but it just seems to me that maybe one of the reasons we haven’t seen more action from Bernanke is that effort would have been better spent directed at Europe, which is what has now happened.
Does Draghi’s commitment lessen the need for Fed action? I think it does, especially given the muddling-along nature of the US economy (yeah, could do better, but its not in recession territory like Europe). Central banks have been known to co-ordinate their activities, there are many examples of this; is what we are seeing another example? (I think it is).