Skip to content
Socio-Economics History Blog

Socio-Economics History Blog

  • About

Socio-Economics History Blog

Socio-Economics History Blog

Moody’s: “The ECB Can Do No More Than Buy Time”!

July 31, 2012 by mosesman
The Eurozone Titanic is sinking!
  • Moody’s: “The ECB Can Do No More Than Buy Time”! 
    by Tyler Durden, www.zerohedge.com
    It would be odd to suggest that one of the most scathing critiques of the ECB’s attempts to talk up the market on nothing but hope, promises and expectations would come from rating agency Moody’s, yet that is precisely what has happened. With Swiss, Dutch, Finnish, and German short-dated bonds once again hitting new record low (negative) rates (and Italian 10Y is weakening), it would appear that at least some of the market is not drinking the all-things-risk kool-aid.
    –
    Alistair Wilson, Moody’s: Draghi Reaffirms ECB’s Willingness to Buy Time, but ECB Cannot Resolve Debt Crisis
    Last Thursday, Mario Draghi, the President of the European Central Bank (ECB), said that “within [its] mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” The statement lifted market sentiment and sent Spain’s 10-year government bond yields back below 7%.

    –
    Media and market commentators have interpreted Mr. Draghi’s remarks as an indication that the ECB is willing to do more to support pressurized euro area sovereigns, for example by expanding the securities markets program (SMP) with further government bond purchases.
    –
    In fact, the statement was a supportive but very general one that contained no specific proposals and offered no firmer prospect of the crisis being resolved quickly. It reaffirms our view that the ECB will ultimately do all it can to support policy makers’ efforts to resolve the crisis. However, that is a necessary but not a sufficient condition for the euro area authorities’ current strategy to succeed.
    –
    The assumption of ECB support is central to the credibility of the authorities’ ‘muddle-through’ strategy for resolving the crisis – a reactive and gradualist approach that makes periodic shocks inevitable. The ECB’s willingness to act in a way that, by bolstering investor confidence in peripheral sovereigns, temporarily supports those countries’ continued access to debt markets, is a crucial element of the strategy. The ECB’s capacity to provide such support was amply demonstrated with the introduction of the three-year long-term refinancing operation in December 2011. Were the ECB unwilling to act in this way, the authorities’ muddle-through strategy would be unlikely to succeed.
    –
    However, the ECB can do no more than buy time: its actions alone will not resolve the debt crisis. Resolution will ultimately rest on achievement of fundamental changes to member states’ budgetary positions and debt stocks, on structural economic changes required to stimulate growth, and on institutional reform to the economic and fiscal governance of the euro area. Each change will take years to accomplish, and support from the ECB will be essential to the preservation of the euro in the meantime.
    –
    read more!

end

Post navigation

Previous Post:

Are Fiat Currencies Headed for a Collapse?

Next Post:

Forget It Draghi, Spain is Finished… Here’s Why.

Pages

  • About

Recent Posts

  • G7 Decision To Ban Russian Gold Imports Could Backfire Spectacularly.
  • CIVIL WAR IMMINENT! – Get Ready Now! – Globalists Want Order Out Of CHAOS For The Great Reset!
  • FDA-Approved COMIRNATY ‘LIVE’ (MICROSCOPE Review Reveals CANCEROUS GRAxPHENE Oxide NANO-PARTICLES
  • Total Biometrics Surveillance… Under The Skin Surveillance. COVx-ID-AI (Humans Are Hackable Animals, Freewill is Over)
  • What GRAx-PHENE Oxide & NANO_TECH Have To Do With 5-G [KLA / LA QUINTA COLUMNA / In Depth Review] — Total M_ind Co_ntrol
  • British Engineer: 5-G Is Not Only A Weapon, But A Crime Against Humanity — Capability to Target Acquire And Attack the vWaxc-inated Due to Their Nano Metamaterial Antenna Coxvid-1_x9 vWac_xine
  • Reactivation Of Chickenpox Virus Following COVID-19 Injections On The Rise
  • War With the Russian Federation
  • Explosive Report Confirms Expansive CIA ‘Stealth Network’ Of Spies & Commandos Inside Ukraine
  • Alien (ie. Fallen Angels) Link to Human Destruction – Steve Quayle
  • Russia To Transfer Nuclear-Capable Missiles To Belarus “Within Months”: Putin
  • Pfizer And Moderna Ask FDA To NOT TEST All Future Covid Jabs!
  • EU Renews Digital Covid Pass Despite 99% Negative Public Feedback
  • By Taking on American Hegemony And Challenging the Dollar, BRICS Members Represent the Best Hope for a Fairer World Order
  • The Collapse Has Begun! DO THIS NOW – Rafi Farber
  • Russia And China Are Brewing Up a Challenge to Dollar Dominance by Creating a New Reserve Currency
  • Propping Up A Failing Empire | Jerry Robinson — The Federal Reserve Will Role Out the Digital Dollar As An Attempt to Save Dollar Hegemony
  • Russian FM Spokesperson: BRICS Mechanism a Model of Multilateralism And Win-Win Cooperation
  • Central Banks Will Load Up on Gold This Year, Commodities Will ‘Recapitulate’ – Brent Cook
  • Economic Collapse is Unavoidable

Archives

  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011

Categories

  • Disaster
  • Economics
  • Endtimes
  • Geo-Politics
  • History
  • Medicine & Health
  • Satire
  • Science & Technology
  • Social Trends
  • Uncategorized

Meta

  • Log in
  • Entries RSS
  • Comments RSS
  • WordPress.org
July 2012
M T W T F S S
« Jun   Aug »
 1
2345678
9101112131415
16171819202122
23242526272829
3031  
© 2022 Socio-Economics History Blog | WordPress Theme by Superbthemes