Hesitant ECB bond buying could backfire
From uk.reuters.com
Unless the European Central Bank sets no limits on its purchases of government bonds to lower struggling countries' borrowing costs, some investors may see any intervention as a chance to sell, threatening the success of the bank's plan. Doubts over whether the ECB's latest crisis-fighting scheme will be aggressive enough, in terms of both volume and duration, to contribute to solving the debt crisis could see foreign investors in particular simply sell down some of the more than 900 billion euros of Spanish and Italian debt they still own. Past experience, when the ECB hesitantly bought up shunned government bonds ...
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