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Why Draghi's drinking in the Last Chance Saloon

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"Eventually, the markets will see through this trick" - Stephen Pope, the MD of Spotlightideas on words and little action from the European Central Bank and its President, Mario Draghi. He's deeply concerned the ECB is simply ignoring the real economic dangers in the eurozone. On Wednesday it was revealed that the Italian economy is still in recession. Inflation in the euro-area is at its lowest level since October 2009 and concerns are mounting about the threat of deflation. On top of that, a major bank in Portugal has just had to be bailed out by the government and France, according to Stephen, is a "sleeping nightmare that hasn't been caught out by the markets."
All this would suggest the ECB should implement decisive action in its August meeting this Thursday, but no one is expecting any new policy announcements. This is a mistake, according to Stephen. He doesn't understand why the central failed to move earlier to combat the deflation threat and the risks to the wider economy are building up fast.