questionmark Posted December 14, 2011 Author #126 Share Posted December 14, 2011 The VI's can print article's till the ink runs out. However the markets do not see the latest treaty as the answer to the immediate financial crisis. The ECB has reduced buying bonds, the lending rates are rising hitting a new EU record for them in the Euro. All this time the Pro-euro's are still claiming a victory? I really can't see what their case is? What is the plan? Nobody including the mighty Germany has an answer yet. Sure they have a plan which is effectively closing the doors after the horses have bolted. But what is the immediate answer? Surely we must agree whether we are pro-Europe or Against that the immediate financial problem has not been resolved and markets back up this feeling. The markets are reacting every time somebody in Europe says that they will not implement the US FED revolving door lending system the same way: by selling euros for dollars and pounds. It is better to go to the FED or BoE and get 150% on the capital cost instead of real 7% in the rest of Europe. The problem is the sustainability. That is the point nobody has gotten yet. If a bank goes to the FED and lends at .5%, then turns around, goes to the next counter and buys bonds for 2% that means that they are drying up the resources of the country. No matter what the markets do there will be no unwarranted euro printing by the ECB. And so far all the markets are doing is supporting Europe's economy (maybe not the sovereign debt, but who cares?). Link to comment Share on other sites More sharing options...
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