James Levy

Quant Easing: Central Banks Unleash the 'Nuclear' Option

The European Central Bank cannot use the ¨nuclear option¨, as their are now bonds issued by the European Union to purchase. All debt is issued by the individual countries of the European countries which share the Euro. Any intervention on the part of the European Central Bank would be very complicated and political, as they would have to decide which bonds of which countries to purchase. Should they support Greece and Ireland and Spain and buy their higher yielding sovereign debt, or stay with AAA rated, lower yielding French and German debt?

A political nightmare. Europe is doomed to become the new Japan.