NEW YORK ( TheStreet) -- The time for the world's central banks to live up to the assumptions of additional stimulus that have fueled the rally in stocks this summer is fast approaching.
First up, of course, is the European Central Bank, which reportedly could outline plans for an unlimited bond-buying program on Thursday. On the surface, this proposal resembles the panacea eurozone watchers have been waiting for but the details may tell another story.
The analysts over at Capital Economics were taking a very skeptical view ahead of the announcement. Among the firm's criticisms was the "sterilized" nature of the asset purchases, referring to expectations that the ECB plans to make sure the bond buys have a neutral impact on money supply, thus falling short of "full-blown" quantitative easing, and the fact that the bank is likely to concentrate on bonds with short maturities of less than three years.
Even the "unlimited" nature of the anticipated proposal from ECB President Mario Draghi fails to impress."For a start, the lack of a limit on bond buying could simply reflect unwillingness on behalf of the ECB to commit to a specific amount of purchases rather than anything bolder," the firm wrote in commentary on Wednesday, adding later: "Meanwhile, Draghi is likely to restate that the ECB will not act until the EFSF