Posts
"A joke making the rounds: A Greek, an Italian and a Spaniard walk into a bar. Each orders a drink. Who pays? The German."
After yesterday's massive co-ordinated cbanks liquidity move...that eerily aped an Oct 2008 Lehman action...markets surged...because it foreshadows probable future moves....and... of course... buys more time.
The technical 50 bps rate decrease... may also lessen banks' needs to sell assets at fire sale prices.
But..."Euro-area policy makers have been trying to figure out how to exit the current crisis and create an appropriate institutional structure," says an economist. Unfortunately..."the attempt to meet these objectives simultaneously has...contributed to worsening the crisis."
