The comparison provides an interesting thought experiment for European investors, especially given how astounding and far-reaching the Draghi rally has been.
The chart below shows the size of the Greenspan Fed's response to the bursting of the tech bubble in the context of its previous policy actions. When markets crashed, the Fed slashed interest rates:
What is perhaps most interesting is that the crash in markets at the end of the tech bubble was preceded by a phase where the Fed was tightening monetary policy by raising interest rates.
Most consider recent developments in Europe – the ECB made clear in January that it is forgoing further rate cuts at this stage, and now banks are paying back loans to the ECB, which is also sending short-term rates higher – to amount to a de facto tightening.
That's why Morgan Stanley's Mutkin says it will be crucial to observe Draghi's response to the upward move in rates since the last meeting.
Meanwhile, it's probably good to keep in mind that markets have been in this situation before.
READ MORE: Morgan Stanley Is 'Getting Worried' About Europe Again >