Whatever it takes isn't working

Whatever it takes isn't working. Nearly 2 years after Draghi's 'landmark' speech, which supposedly turned things around in Europe, most of the continent remains mired in or on the fringe of recession. Record high unemployment is stubbornly refusing to fall, whilst youth unemployment is a crisis that threatens to permanently set back an entire generation. Sovereign balance sheets are in worse shape today than they were when the GFC hit (average euro area debt to GDP is 25% higher today than 2008), even if the pace of the bleeding has slowed. News today out of Europe was not encouraging, with year on year loans to the private sector still falling by over 2% y.o.y, highlighting continued absence of demand for credit. Loans to non-financial corporates were particularly weak. M3 did pick up slightly, although it's still well below the ECB's target. More details here (VIEW LINK)