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ECB bond buying

edited February 2014 in Off-Topic
(What's become of the blue and red bond scheme?) "Under the program, the ECB committed itself to purchase open-ended amounts of government bonds of vulnerable euro members, as long as countries seeking assistance first agreed to conditions on fiscal and economic reforms. The ECB would only buy bonds at maturities up to three years."
http://online.wsj.com/news/articles/SB10001424052702304680904579368230722176484?mod=WSJ_World_LEFTSecondNews

Comments

  • Yuppers. They're all wish'in and hop'in the "whole thing" doesn't blow up in their faces. Still monetary musicial chairs everywhere..... Much politics, face saving and finger pointing will continue going forward, IMO.
    ECB and member states under the mandates might remind one of a Federal Reserve here that was attempting to be directly involved with either individual state muni bonds or a central bank of a given state. All playing with some different rules and/or psuedo rules and definitely with different economic needs and structures. Not unlike North Dakota telling Michigan to buzz off, we don't want your problems on our shoulders. We're do'in just fine with low unemployment and excellent cash flow. Michigan, have a nice day; and don't let the door hit your arse on the way out.

    Ted, yes; I know.....Dusty Springfield. I hear the song words now.

    Regards,
    Catch
  • Reply to @catch22: Speaking of the devil.
    Regards,
    Ted

    Dusty Springfield
  • edited February 2014
    Gotta be bleached blonde. I don't remember THAT at all. Ya, EU is surely still dealing with fallout from the crisis. Ireland = the poster-child for "recovery" success--- but it depends on how you measure that, eh? Individual Irish citizens might not be very happy with the government's issuance of a GUARANTEE to backstop ALL of the country's failed banks. It's like the entire COUNTRY'S financial system belongs in a "bad bank." But if you are Joe Schmoe without much money and you have a simple account in their Post Office savings bank, yer feeling like you just got took to the cleaners.

    I think that blue and red bond scheme would be helpful overall. But I guess Germany will never let it fly, Orville. Blue = EU general bonds. Red = country-specific bonds. They ARE united under the common currency. Good thing I'm not in charge. The whole EU enterprise is entirely too democratic. They can't get out of their own way. On the other hand, the healthcare plan of most any EU member state beats our own, hands down. Even WITH Obamacare.
  • Hi Crash,

    You noted: "They ARE united under the common currency. Good thing I'm not in charge. The whole EU enterprise is entirely too democratic."

    >>> Agree that they are united via currency. Do you mean "democratic" in the sense of "ruled by laws"? In this case, a rule of law related to ECB actions over member countries ???
  • edited February 2014
    Not sure. What I originally meant was simply that there's too much dithering back and forth, it's too loose, like the UN, without any real authority to do anything that the member States won't allow it to do. So, the "EU" is a "Union" only insofar as politics will allow. Which means that not much can be done under EU authority. Like being a Congregationalist. It's a denomination in search of an identity. Well, maybe. If an identity is seen to serve a purpose, depending upon whether we will alienate anyone in the process--- in which case, we just won't do it. Unless you're interested in talking about it. Again. Identity? We can just re-define what it means, and maybe keep everyone happy. Or maybe not. Until the next congregation down the road gets tired of merely pretending to be in a REAL denomination, with every single different, individual congregation doing whatever it feels like, disconnected from the others in the alleged denomination. Why can't we just redefine "denomination?" Ya. YA! THAT'S the ticket. Hee hee.
  • ...........I DO know that the EU sponsors loans and stuff, for new projects. I saw the blue flag with stars flying over there. Signs were up next to the projects to make sure you knew this stuff was funded not just with local money. "Thanks, EU. Thanks a lot! We're ever so grateful."
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