The ECB dangerous bubble in five charts. Thread:

1) Excess Liquidity soars to €3.4 trillion

A problem of solvency is not solved with more liquidity

The most aggressive monetary policy with one of the poorest results:

2) The ECB balance sheet is almost twice the Fed's vs GDP

Massive monetary intervention for diminishing returns:

3) The ECB balance sheet vs Economic Activity. Eurozone Manufacturing and Service Sectors PMI and Eurozone consumer confidence

Almost insolvent eurozone sovereign countries financing themselves at negative rates, a perverse incentive to increase debt and ignore structural imbalances.

4) A policy designed to give time to make structural reforms becomes an excuse to avoid them.

A massive bond bubble with a very poor impact on equities.

5) ECB's policy, designed to be temporary, has become permanent and accelerated while equities' impact is negligible.

End thread @threader_app