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"Factually insolvent," says Jim Grant of the ECB, whose purchases of highly questionable Greek...

"Factually insolvent," says Jim Grant of the ECB, whose purchases of highly questionable Greek debt is 150X the bank's capital. "The looming threat in European monetary affairs is the financial integrity of the central bank itself," says Grant.
Comments (8)
  • PVizzle
    , contributor
    Comments (741) | Send Message
     
    This is alarming.
    9 Jun 2011, 01:33 PM Reply Like
  • dieuwer
    , contributor
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    The gold holdings of the ECB could be revalued to cover the Greek debt and a little. This means depreciation of the euro against gold. Easy to do for the ECB: just print money.
    9 Jun 2011, 01:51 PM Reply Like
  • PVizzle
    , contributor
    Comments (741) | Send Message
     
    You mean the ECB's gold is carried at historical cost? I don't know anything about the ECB's balance sheet but it seems pretty goofy that they're carrying gold at cost.
    9 Jun 2011, 02:02 PM Reply Like
  • Radardoc
    , contributor
    Comments (190) | Send Message
     
    It seems pretty goofy to buy Greek debt
    9 Jun 2011, 03:17 PM Reply Like
  • PVizzle
    , contributor
    Comments (741) | Send Message
     
    I'd rather buy the athens composite after a Greek civil war!
    9 Jun 2011, 05:09 PM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    The EU shouldn't worry because when it hits the fan, they will spread the risk to the US taxpayer and the FED will get out their checkbook for another bailout. The hole from the mess is so deep that the only thing western societies can do is spread the pain across all citizens from the banks of the Seine to the shores of Lake Washington.

     

    The effect of course assuming it prevents catastrophe will be to dampen economic activity for the next few years...not quite a depression but it will feel like one.
    9 Jun 2011, 01:54 PM Reply Like
  • HiSpeed
    , contributor
    Comments (1063) | Send Message
     
    For the individuals in the US Middle Class that have lost their jobs and cannot find new ones, it already is a Depression.
    9 Jun 2011, 02:17 PM Reply Like
  • Dr. Poly
    , contributor
    Comments (362) | Send Message
     
    Just what we need, crackpots coming out of the woodwork to tell the truth to a plethora of pollyannas.
    9 Jun 2011, 01:56 PM Reply Like
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