Monday, May 10, 2010

Germany Blinks

Wow.

I admit I am shocked (but not awed). The Euro Nations have put together a large ($1 trillion or so) contingency fund to defend their common currency and stock markets are so far rejoicing.

But what shocks me is the fact that the ECB (European Central Bank) is now going to be directly buying government debt.

In other words, goodbye Central Bank Independence, hello Weimar 2.0???

I would call this Wow and Yikes, not Shock and Awe.

6 comments:

Anonymous said...

What was the ecb buying before?

frabuk said...

It is not what they were buying, it is from whom!

In classical open market operations they buy bonds (usually government securities) from Banks. Not directly form the government who issued the bond.

If i am wrong here please feel free to disabuse me of the above notion.

First they started accepting non-investment grade securities as collateral, now this.

This all seems like one discretionary cluster f***!

In the face of ever expanding money supplies I am not that confident about independent central banks anymore.

I sure hope you are wrong about the Weimar 2.0 part.

seslimuhabbet said...

Really trustworthy blog. Please keep updating with great posts like this one. I have booked marked your site and am about to email it to a few friends of mine that I know would enjoy reading
Sesli sohbet Sesli chat
Seslisohbet Seslichat
Sesli sohbet siteleri Sesli chat siteleri
Sesli Chat
Sohbet Sesli siteler
Sohbet siteleri Chat siteleri
Sohbet merkezi chat merkezi
Sesli merkezi sesli Sohbet merkezi
Sesli chat merkezi Sohbetmerkezi
Sesli Sohbet Sesli Chat
SesliSohbet Sesli chat siteleri
Sesli sohbet siteleri SesliChat
Sesli Sesli siteler
Seslimuhabbet sesli muhabbet
sesli sohbet sesli chat siteleri
sesli sohbet siteleri sesli chat
seslisohbet seslichat
seslikent sesli kent
sesli sohbet sesli sohbet siteleri
sesli chat sesli chat siteleri
seslisohbet seslichat

History Dissertation topics said...

it's good to see this information in your post, i was looking the same but there was not any proper resource, thanx now i have the link which i was looking for my research.

Dissertation said...

I am very thankful to you for posting such stuff.This really help me lot.

DEWHURST TOULSON said...

goodbye Central Bank Independence,
buy dissertation example uk