I agree that the ECB is ‘backing off’ and will only again engage if it gets bad enough.

Back to the analogy of watering the flower only when it’s about to die.

They don’t realize that it needs continuous watering in the normal course of events.

14 more days to the Greek payment date.

Unfortunately, looking like darned if you do and darned if you don’t.

ECB after the LTROs: It is up to governments now

After the implementation of the second 3-year LTRO last week, the ECB now is likely to believe it has done enough to stabilise the Euro area’s financial system and, implicitly, the funding situation for peripheral governments. Any announcement of further non-standard measures seems unlikely at this stage, as the Governing Council now views the ball as being squarely in the court of governments.

2 Responses

  1. So the ECB continues Draghing them through Heck.

    What would happen if they decided to issue Mosler bonds, without the ECB’s blessing? Could they do it through a corporate front somehow?

  2. The Other Ticking Time Bomb in Europe: Auto Overcapacity
    http://www.nytimes.com/2012/03/08/business/global/the-other-ticking-time-bomb-in-europe-auto-overcapacity.html

    now there auto overcapacity too? solution is same as for pharma; start dumping in foreign markets
    A race to the bottom? (our peasants can export more, for less, than yours can! And we’ll prove it.)

    or start doing what species have always done; OTHER THINGS!
    (that is, things other than making autos, or making drugs)
    more diversification, faster = exploring options

    What’s that? We’ve “run out of currency”? By Fiat? Now we’re mixing cars & currency!

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