The ECB to the rescue?

Posted on 08/05/2011


As I mentioned yesterday, the possibility for a bottom at the European close was high, but I didn’t expect the ECB to come in and say they planned on monetizing (collateralizing, backstopping….if you’re into euphemisms) Italian and Spanish debt.

The band aid gets bigger.

It probably won’t work (particularly if you’re German and get tired of footing the bill), but in the near term the markets like “free money” and risk is back in vogue again.

This is completely insane.

Also worth noting: there are 17 member nations where the Euro is the only currency. Of those, Greece has had 2 bailouts, Ireland one, Portugal one, and now we can add Italy and Spain to that list.

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