All eyes tonight will be on the ECB policy meeting and what Super Mario announces

All eyes tonight will be on the ECB policy meeting and what Super Mario announces. 'Whatever it takes' was an astounding success, but the key question is does the ECB have what it takes? Expectations have been set high since the ECB President's Jackson Hole speech about declining inflationary expectations and the limitations of monetary policy. I would be surprised if any action is taken tonight, not because its isn't needed, but because government reforms are only undertaken during periods of stress and a limited ECB QE may take the pressure off governments to reform tax and industrial relation systems, and on that front could be counter-productive in the long-run. As I have stated before, the ECB needs to bail the banks out first then work on household balance sheets at the same time as governments reform their economies in France and Italy. Our overnight report is here: (VIEW LINK)