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That little 40 point bounce in the DJIA in the last minutes ... a rumor making the rounds from...

That little 40 point bounce in the DJIA in the last minutes ... a rumor making the rounds from Germany's Bild that German backing for issuance of eurozone bonds is no longer being ruled out by those in Merkel's coalition. Reuters describes Bild as "normally well-informed." Caveat emptor.
Comments (3)
  • screamin187
    , contributor
    Comments (295) | Send Message
    I assume there is a typing error here. I have a feeling the comment should read "German backing for issuance of eurozone bonds is no longer being ruled out..." Either way, another headline that has a long shot chance of fruition and would not solve the problem anyways. Can't fight the business cycle, can only soften the blow.
    23 Nov 2011, 03:24 PM Reply Like
  • labas112
    , contributor
    Comments (433) | Send Message
    What is the point of saving the Euro at this juncture? Everyone knows this is a flawed currency. Just get rid of it so we can all move forward again. The rumors are increasing the volatility and prove nothing other than making everyone more nervous about the situation.
    23 Nov 2011, 03:26 PM Reply Like
  • bob adamson
    , contributor
    Comments (4562) | Send Message
    Arguably German Chancellor Merkel uses crises to move here governing coalition partners in Germany to accept measures that they would otherwise reject. In this, paradoxically, she increasingly finds limited and qualified support from the Green Party and Social Democratic Parties in the opposition. Looking back over the last couple of years suggests the forgoing and also suggests that she hitherto has favoured incremental steps rather than bold solutions. However, She may be about to act and act more decisively.


    This is only speculation on my part but events are coming to a climax as it becomes abundantly evident that
    (a) the Euro crisis and the fiscal crises in many peripheral Euro zone States are rapidly growing both beyond those peripheral States to Germany itself and also beyond the coping capacity of existing EU institutions,
    (b) Germany can not insulate itself form the full impact that a collapse of the Euro zone and Euro would have, and
    (d) while German sovereign debt borrowing rates have until recently actually gone down on a ‘safe harbour’ factor, German borrowing costs will actually go up markedly if the Euro zone begins to actually collapse.
    All of which favours a bold German move; one that does not draw back from Europe but rather favours greater support for the EU project.


    Implicit in the following articles and commentary are the underlying assumptions that the climax of the crises is imminent and that a serious German initiative, one that marks a departure from previous stands against extending sovereign debt assistance to stressed States, is both expected and increasingly desired both within and outside Germany.








    The following comment by Mark Carney November 23rd also expresses the sense that the time for action is now.


    “The global economic outlook has weakened considerably and financial market volatility has increased, owing in particular to the ongoing European sovereign debt crisis. European authorities have announced important plans to provide time to refound their monetary union, but acute strains persist. At this point, the crisis appears barely contained.”
    23 Nov 2011, 04:11 PM Reply Like
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