simple
ECB BUYS UP
as much of the outstanding stock of
CLUB MED SOVEREIGNS
as necessary to get rates back into the sustainable range
but cuz marty is quietly boiling over at the thought of such louche pratices by the ECB
find below
marty's ' tactic'-fully stated blast and counter proposal:
"is that what the ECB should be doing?"
"While any central bank must be able to conduct open-market operations to manage liquidity in financial markets, selective purchases of individual country bonds that bear high interest rates because of current and past fiscal profligacy is both unnecessary and dangerous."
we really could stop there and will so far as blasting goes
counter proposal:
" A better rule for the ECB would be to conduct open-market operations by buying and selling a “neutral basket” of sovereign bonds, with each country’s share in the basket determined by its share in the ECB’s capital."
we really could stop there and will so far as blasting goes
counter proposal:
" A better rule for the ECB would be to conduct open-market operations by buying and selling a “neutral basket” of sovereign bonds, with each country’s share in the basket determined by its share in the ECB’s capital."
holy moses
who in their right mind would want to
"reduce pressure on the governments of Italy, Spain, and other high-interest countries to make the politically difficult decisions that are needed to cut long-term fiscal deficits.... An ECB policy that artificially reduces their sovereign borrowing costs would make these steps even more politically difficult."
who in their right mind would want to
"reduce pressure on the governments of Italy, Spain, and other high-interest countries to make the politically difficult decisions that are needed to cut long-term fiscal deficits.... An ECB policy that artificially reduces their sovereign borrowing costs would make these steps even more politically difficult."
fact narrative:
" The peripheral eurozone countries became over-indebted in the last decade because the bond market failed to provide a signal that debts were too high."
fortunately
" That has now ended...bond investors no longer treat all eurozone sovereign debt as equal."
restating the obvious :
" an ECB program to limit interest-rate differentials would eliminate this important signal."
but how about this crooked angle
" ...the ECB risks finding itself in the politically dangerous position of deciding whether a country’s fiscal actions are tough enough to be rewarded with lower interest rates. "
"The ECB would thus cross the threshold from monetary policy to fiscal policy"
that is why one reads marty ...to get at the sophistry
the ECB isn't NOW dictating fiscal policy marty ?
------------------------
then comes the upside down cake taker :
" The peripheral eurozone countries became over-indebted in the last decade because the bond market failed to provide a signal that debts were too high."
fortunately
" That has now ended...bond investors no longer treat all eurozone sovereign debt as equal."
restating the obvious :
" an ECB program to limit interest-rate differentials would eliminate this important signal."
but how about this crooked angle
" ...the ECB risks finding itself in the politically dangerous position of deciding whether a country’s fiscal actions are tough enough to be rewarded with lower interest rates. "
"The ECB would thus cross the threshold from monetary policy to fiscal policy"
that is why one reads marty ...to get at the sophistry
the ECB isn't NOW dictating fiscal policy marty ?
------------------------
then comes the upside down cake taker :
" Germany might not continue to accept the default risks implied by large ECB purchases of high-risk sovereign bonds."
risk to who and conveyed to them how martnik ?
" Germany already faces large financial risks, owing to the ECB’s balance sheet and the Target2 balances at the Bundesbank that are generated by international flows of deposits to German commercial banks. "
is this the risk net fund flows might head back toward club med ?
i see that might not get a big "do it " from the german bankers now on the receiving end that would then be on the losing end
but mary what about the german woikers ? are they more at risk
with a ECB going toward a med bail ?
risk to who and conveyed to them how martnik ?
" Germany already faces large financial risks, owing to the ECB’s balance sheet and the Target2 balances at the Bundesbank that are generated by international flows of deposits to German commercial banks. "
is this the risk net fund flows might head back toward club med ?
i see that might not get a big "do it " from the german bankers now on the receiving end that would then be on the losing end
but mary what about the german woikers ? are they more at risk
with a ECB going toward a med bail ?
" As the risks accumulate, it is not inconceivable that Germany might conclude
that, despite the potential impact on its exchange rate, it would be better off
returning to the Deutsche Mark"
yup better a soaring revaluation then all these added risks
.
that, despite the potential impact on its exchange rate, it would be better off
returning to the Deutsche Mark"
yup better a soaring revaluation then all these added risks
.
.
side bar zinger
side bar zinger
", ECB officials’ recent statements , by reversing the decline of the euro’s value, may have blocked the market response that is needed to shrink current-account imbalances and boost GDP in the eurozone."
get it ?
germany could take a reval
the entire zone couldn't
ya ya ya
the damn corral fucks with every member nations options
that was the fucking point from day 1 !
there is no way but the MNC way
the MNCs are the only Gods
and ECB is their.....errrr .... enforcer
