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The ECB and eurozone governments are preparing to take co-ordinated action to buy government...

The ECB and eurozone governments are preparing to take co-ordinated action to buy government bonds in an attempt to bring down borrowing costs for Spain and Italy, Le Monde reports. The eurozone, via the EFSF and ESM rescue funds, would purchase debt directly from government and the ECB would act in the secondary market. The speculation comes a day after Mario Draghi's "whatever it takes" comment.
Comments (10)
  • GaltMachine
    , contributor
    Comments (1135) | Send Message
     
    God, I am so confused. Aren't they already doing the things mentioned in this blurb?
    27 Jul 2012, 08:12 AM Reply Like
  • SanDiegoNonSurfer
    , contributor
    Comments (2624) | Send Message
     
    "The eurozone, via the EFSF and ESM rescue funds, would purchase debt directly from government"

     

    Well they're definitely not already doing this, GM. However, I think it's highly questionable whether they really will do that and even if they do whether it will be in time and will be enough to make a difference.
    28 Jul 2012, 12:09 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    Its all talk and headlines now...no action...unnamed sources....I bet these politicians and bankers have trading accounts and they are playing daily....as they can sway the markets with crap like this.....
    27 Jul 2012, 08:20 AM Reply Like
  • marilyn61
    , contributor
    Comments (173) | Send Message
     
    It would be a good thing is there was actually something happening to try and help Spain and Italy survive their current situations . So we shall see if it's just hot air or a positive move forward.
    27 Jul 2012, 08:52 AM Reply Like
  • schatzl
    , contributor
    Comments (391) | Send Message
     
    Honestly, what do you want to save?

     

    Spain has lived off cheap credit of 15 years, underwent the mother of all housing bubbles, let their humble traditional industries crumble while squandering away valuable resources to corrupt and spendthrift local politicians. They're in for some serious deleveraging, no way about it. Some things may be delayed but cannot be averted.
    27 Jul 2012, 05:50 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9928) | Send Message
     
    The choice is between much higher inflation, which will significantly reduce many EU citizens standards of living, OR major debt writedowns and writeoffs, which will predominately affect the wealthiest segments of society.
    27 Jul 2012, 07:15 PM Reply Like
  • SanDiegoNonSurfer
    , contributor
    Comments (2624) | Send Message
     
    Add in that Spain's banking system is wallowing in fraud. Remember the S&L crisis in the U.S., or Merrill? The proportion of now-worthless financial obligation to GDP in Spain is many times what it was for either of those crises.
    28 Jul 2012, 12:13 PM Reply Like
  • minecanary
    , contributor
    Comments (413) | Send Message
     
    Galt, they want you to be confused... just like the 'selling' all the Treasury debt to the Fed is supposed to be different then stuffing the IOU's for Obutthead's deficits in the other pocket. The spinning plates are almost ready to fall.
    27 Jul 2012, 05:24 PM Reply Like
  • Angel Martin
    , contributor
    Comments (1298) | Send Message
     
    ok, so they are now admitting that Spain and Italy are in as bad a shape as Ireland, portugal and greece... and italy and spain now need a bailout as well...

     

    the market takes that as "good news"... i guess on the idea that the delusional euro-elite politicians are waking up to reality...

     

    the fact is, the economies of these countries are getting worse every day, their ability to ever service their debts is getting more and more remote

     

    if germany lends money at low interest rates to countries that can't pay it back, they haven't "saved" anything, but they have set themselves up for big losses in the future

     

    the euro can't collapse until they have tried everything, the final steps are eurobonds and direct monetization... they aren't there yet but they are getting there.
    27 Jul 2012, 08:08 PM Reply Like
  • Banner17
    , contributor
    Comments (60) | Send Message
     
    Timmy begging Shauble for the bazooka won't work. Europe still has laws that prevent debt monetization by the ECB. I don't think Germany is as anxious to discard the rule of law as Timmy is and has been.
    28 Jul 2012, 09:55 AM Reply Like
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