We live in interesting financial times. That ancient Chinese curse seems appropriate today. Frankly, nobody knows whether the ECB’s new policy will work or not. If the real problem is a lack of demand for quality loans, then paying 0.10% per year to avoid riskier loans may seem like a pretty good deal. The ECB is implicitly assuming the problem is lack of loan supply. I’m skeptical of this — not just in the Eurozone, but in the U.S. as well. Continue Reading →