As we noted last week, analysts have been tittering over a new potential policy response to risks associated with a global slowdown—most particularly the crisis in Europe.
World leaders are worried, as evidenced by the conference call between G7 finance ministers and central bankers this morning. And with fears about bank runs in Spain escalating, some analysts expect some kind of coordinated central bank action similar to that which we saw announced last November to lower dollar swap rates between banking systems.
Read more: http://www.businessinsider.com/what-are-the-odds-of-a-global-coordinated-intervention-2012-6#ixzz1x4FpPqXo
Why does this seem like they are trying to fight a fire by saying they are fighting a fire....The building burns while everyone stands around arguing about who should get water.....
ReplyDeleteBailing out Spain's banks will lead to a Spain's gov't being bailed out...The 2 are intimately connected. Someone better have a plan to backstop Spain's financing needs....If you had your $$$ in a bank that the Fed just propped up, would you keep your $$$ in it?
Italy is next....
And if the 4th largest economy (and soon #3 - Italy will next..) in Europe is being bailed out, who's coming up with all this $$$ for ESM? Germany and France (Oh wait...Germany) better get its checkbook out....
Starting to get concerned that there's no more trading upside for the EUR....This is the most obvious trade on the planet right now...
Vinbo