The ECB can stop the sovereign debt crisis "almost immediately" by carrying out a "massive"...

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Garfield23 Comments (154)
 
this is such a joke! these CB fhools think that the world wants more debt, if anything they continue to prove their lack of credibility...the house of cards is falling in Euro.

throwing more money at the problem worked in the beginning, but now investors are realists and want assets to stand on their own validity...

the more they talk about throwing money at it, the more concerned we get...

Owning the Euro is the biggest scam as it will be worth 1/2 of what it currently is in short order...
18 Jun 2012, 03:42 PM Reply Like

youngman442002 Comments (4972)
 
But it keeps bankers in their jobs and in power.....this is save a banker...that is all.....
18 Jun 2012, 03:44 PM Reply Like

Garfield23 Comments (154)
 
investors look at what the variables are, and if they want to cya then go for it, otherwise they continue to ruin the issue...

we see a complete investor withdrawal from europe and seeing the euro crash...

at some point merkel bucks her riders, if you know what I mean...
18 Jun 2012, 03:47 PM Reply Like

montanamark Comments (1359)
 
what a clever idea. its just like a ponzi. print debt and then buy it back. wonder where they got that idea
18 Jun 2012, 03:48 PM Reply Like

Tack Comments (9232)
 
The answer is Euro TARP, more specifically, P-PIP, like was implemented here in the U.S. The purchase of preferred shares, rather than debt, stops the debt cycle and builds capital ratios at the same time. Maintaining the fiction that ECB actions are "loans" is unrewarding to all participants.
18 Jun 2012, 03:48 PM Reply Like

wapiti Comments (463)
 
Didn't it work here in the USA? Just following our plan!
18 Jun 2012, 03:50 PM Reply Like

Gary Jakacky Comments (1832)
 
Don't be surprise if they do. With europe it always pays to imagine the STUPIDEST action to take, then sit back and watch the socialist parties try and grasp credit for thinking of it first.
18 Jun 2012, 03:51 PM Reply Like

Garfield23 Comments (154)
 
good points,...

however, how do you take an equity position in a Country?

thats the flaw in the aforementioned thinking...

also, if they do attempt now they will realize they are out of ammo...
18 Jun 2012, 03:56 PM Reply Like

Philip Mause Comments (2907)
 
Ortiz is basically correct. This what the US and Japan do and we both enjoy very low interest rates. Once investors realize that the ECB is in the picture and will intervene and buy bonds in order to move interest rates to pre-announced target levels, it will not be necessary to actually have the ECB purchase massive amounts of bonds. The market will move in reaction to the ECB's limitless firepower and do the job on its own. This is the way it works in the rest of the developed world. It may not be the best system but the fact that sovereign debt is default risk free in the US, Japan and other countries means that investors will desert the Eurozone until it conforms to the prevailing system of central bank support for sovereign debt.
18 Jun 2012, 03:57 PM Reply Like

Angel Martin Comments (1202)
 
on the contrary, if the ECB announces below market rates on periphery debt, a lot of hold to maturity owners who are underwater will sell, and the ECB will rapidly own almost all the periphery debt...
18 Jun 2012, 07:35 PM Reply Like

credit_man Comments (166)
 
exactly what the FED has done.
ECB has not done it so far as all buy backs were "sterilized" ie created liquidity was withdrawn from interbank money market at time of buy back.

@cyclingscholar i dont understand your reference to socialism as a result....may be your consider mr obama and the FED as socialist bodies??
18 Jun 2012, 03:58 PM Reply Like

alan.greenscam Comments (354)
 
Ortiz is right, Greece or PIIGS is the new South America.... as in South America is the most prosperous continent on this planet now when they finally paid off the IMF, World Bank etc etc.... ask any country down there if they'll ever ever do business with the Banks I mentioned and more....... not a hope .... where do you folks think central banks get there money from...... not to mention but I will, central bankers like the IMF PAY NO TAXES, it's a joke...... and that's a fact Jack !!!
18 Jun 2012, 05:32 PM Reply Like