Euro Area

[Kadagar_AV]

Greece play's the Godwin...

Obviously, they are now trying to determine if Germany really doesn't owe them a pile of money for having been evil Nazis...

Questionable timing, one might think... And I'm not at all sure that is the right card to play to a Germany with a wallet already open... Stupid stupid stupid. Only have swedish sources, will investigate later for english ones.

[Greyblades]

Greece play's the Godwin...

Obviously, they are now trying to determine if Germany really doesn't owe them a pile of money for having been evil Nazis...

Questionable timing, one might think... And I'm not at all sure that is the right card to play to a Germany with a wallet already open... Stupid stupid stupid. Only have swedish sources, will investigate later for english ones.

Probably less stupidity and more desperation, to say greece is in the gutter is being optomistic at this point.

[drone]

ECB agrees to unlimited government bond purchases

The European Central Bank on Thursday moved forcefully to ensure the survival of the euro, agreeing to unlimited purchases of government bonds and a series of other steps meant to restore the world’s confidence in the struggling currency union.

With fresh evidence that a regional recession was undermining even Germany’s industrial might, ECB President Mario Draghi said government bond and other markets had become so dysfunctional that the central bank had to create “a fully effective backstop” for its 17 members.

The broad aims of the new bond-buying program were couched carefully in the language of the bank’s legal mandate to control inflation and not directly finance the region’s governments. But the aim was clear: After nearly three years of a crisis in which the threat of a euro breakup fueled a self-fulfilling slide, Draghi said the bank needed to break the region’s corrosive cycle.

“We want this to be perceived as a fully effective backstop,” Draghi said. “We are in a situation where a large part of the euro area is in a bad equilibrium, where you have self-fulfilling expectations that feed upon themselves and generate very adverse scenarios. There is a case for intervening to break these expectations.”

The new program answers what has been a long-standing call by many from within and outside the euro zone — including the Obama administration and the International Monetary Fund — for the ECB to be more aggressive in trying to resolve the euro zone’s crisis. The ability of the currency union’s governments to act has often been constrained by national politics, the difficulties of coaxing agreement from 17 sets of leaders and their parliaments, and the reluctance of wealthier countries to use their tax dollars to help support others.

Let the raiding of the taxpayers commence!

[gaelic cowboy]

ECB agrees to unlimited government bond purchases


Let the raiding of the taxpayers commence!

Actually it's the other way round this eases taxpayers in countries where bond yields have risen very high.

[drone]

Actually it's the other way round this eases taxpayers in countries where bond yields have risen very high.

Those taxpayers don't have much left to give. The ones in Germany, Holland, etc. are now up for their fleecing.

[gaelic cowboy]

Those taxpayers don't have much left to give. The ones in Germany, Holland, etc. are now up for their fleecing.

This would be a central bank scheme as a result the can create the money they need.

people in wherever will merely see on some tv business channel that German and Italy rates are converging in about a week.

[SoFarSoGood]

"Markets Cheer Death of the Bundesbank" - Die Welt

[Vladimir]

"Markets Cheer Death of the Bundesbank" - Die Welt

So what Germany failed to achieve by force of arms they have achieved through banking?

[SoFarSoGood]

Buy gold or Swiss fancs. Euro devaluation on it's way and probably Germany and Finland out.

I laughed when he said “Action in the primary market would be a violation, not secondary market”... Lisbon Treaty in flames.

[gaelic cowboy]

Buy gold or Swiss fancs. Euro devaluation on it's way and probably Germany and Finland out.

I laughed when he said “Action in the primary market would be a violation, not secondary market”... Lisbon Treaty in flames.

to be honest Gold is that last thing you want to buy now, the stuff is clearly in a bubble.

A currency devaluation pretty unlikely in a monetary system as big as the Euro, far more likely it floats up or down depending on who is buying or selling.

Also the Lisbon Treaty doesn't really have much to do with ECB governance.

[SoFarSoGood]

When paper decreases in value gold goes up - look at the prices relative US QE 1 and 2...of course US QE 3 is just around the corner too.

[gaelic cowboy]

When paper decreases in value gold goes up - look at the prices relative US QE 1 and 2...of course US QE 3 is just around the corner too.

Seeing as the S & P 500 is having is having it's best day in about 5yr I would say were ok.

US QE increased gold buying because a few idiots still think were all in the gold standard or something, if you ask me it's the worst play on the stockmarket.