May 17, 2015

ECB’s Mario Draghi’s QE is only going to increase the existent inequalities, for absolutely no purpose.

So Sir, let us analyze what you know.

You know that the activity of SMEs and entrepreneurs is vital for sustainable growth.

You know that banks need to hold more equity when lending to the risky than when lending to the safe.

You know, I hope, that means banks can earn less risk adjusted returns on equity lending to the risky than when lending to the safe.

You also know banks are tight on equity.

You must know SMEs and entrepreneurs are most usually classified as risky.

And so you should be able to deduct, I hope, that bank credit is not going to flow sufficiently to SMEs and entrepreneurs.

And so you should know that much of ECB’s/Draghi’s QE provided liquidity, is just going to be wasted on inflating the value of the existing assets that already has owners… increasing for absolutely no purpose the existing inequalities.

But yet, when reading your “Draghi perches nicely on both sides of the fence” of May 16, you apparently do not mind.

I am sorry. These last years are going to reflect very bad on the record of the Financial Times.