Insanity in the banking system.

Nearly two years after ECB President Mario Draghi told the world that the ECB would do "whatever it takes" to preserve the Euro, the ECB followed through with the announcement of a substantial package set to fight deflation.

Today's announcement was not a surprise. Many ECB watchers expected Draghi to take several steps today to counter deflationary pressures on the Continent.

The package consists of:

1. Providing up to 400 billion euros in cheap loans to lenders
2. The main refinancing rate was cut to 0.15% from 0.25%
3. The deposit rate was cut to -0.1% from 0%

In May, the ECB inflation rate was a low 0.5%, well below the ECB's target of 2%.

Draghi made it clear in the press conference that if these measures didn't work to boost inflation the ECB was willing to take further steps, including a possible QE program of asset purchases.

"We aren't finished yet," he said.

The ECB is the first Central Bank to take its deposit rates negative.

U.S. stocks are rallying on the news.

Is this what the global stock markets need to take this rally to the next level?

 

Who will deposit money in a bank if it COSTS to deposit.