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  • ECB could bail out Italy in a jiffy

    From theglobeandmail.com

    The European Central Bank could ease the debt pressure on Italy in five minutes. Many investors would welcome that. But the ECB may consider that not “saving” Italy has done a lot of good. Just how easily the ECB might bail out Italy is shown by Britain. Why is British government debt not nearing 7-per-cent yields, like Italy’s, but trading at absurdly low 2.2-per-cent levels? The main reason is that Britain has a lender of last resort, which is willing to print its own currency. Italy doesn’t – not yet, at least. Britain’s ultimate lender has certainly been active. The Bank of England aims to print a ... (full story)

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  • Comment #1
  • Quote
  • Nov 16, 2011 3:09am Nov 16, 2011 3:09am
  •  Guest
  • | IP XXX.XXX.4.27
I believe ECB can save the whole Euro Zone. It is a matter of time only.
 
 
  • Comment #2
  • Quote
  • Nov 16, 2011 3:14am Nov 16, 2011 3:14am
  •  toptrader11
  • | Joined Jul 2011 | Status: Member | 537 Comments
They will say anything to make euro rebound back up
 
 
  • Comment #3
  • Quote
  • Nov 16, 2011 3:21am Nov 16, 2011 3:21am
  •  Guest
  • | IP XXX.XXX.4.27
Euro currencies have to keep strong to solve the debt crisis
 
 
  • Comment #4
  • Quote
  • Nov 16, 2011 3:24am Nov 16, 2011 3:24am
  •  Guest
  • | IP XXX.XXX.164.164
china will save the eurozone debt crises
 
 
  • Comment #5
  • Quote
  • Nov 16, 2011 3:24am Nov 16, 2011 3:24am
  •  cichy
  • | Joined Aug 2011 | Status: Proud dad | 283 Comments
Quoting Guest
Disliked
I believe ECB can save the whole Euro Zone. It is a matter of time only.
Ignored
Sure, they need a lot of time to print all these euros.
 
 
  • Comment #6
  • Quote
  • Nov 16, 2011 3:39am Nov 16, 2011 3:39am
  •  Aerton
  • | Joined Oct 2011 | Status: Member | 244 Comments
Quoting cichy
Disliked
Sure, they need a lot of time to print all these euros.
Ignored
And it won't stop the crisis either, postpone it rather.
And if they dont get rid of PIIGS, the PIIGS will continue asking for more money.
 
 
  • Comment #7
  • Quote
  • Nov 16, 2011 3:54am Nov 16, 2011 3:54am
  •  Guest
  • | IP XX.XXX.248.164
This is a rolling crisis through the euro zone. It will eventually infect every country until we get a systemic solution: full monetisation and union or break up.

long term outcome for the Euro is binary - integrate or die
 
 
  • Comment #8
  • Quote
  • Nov 16, 2011 4:06am Nov 16, 2011 4:06am
  •  cichy
  • | Joined Aug 2011 | Status: Proud dad | 283 Comments
Quoting Guest
Disliked
china will save the eurozone debt crises
Ignored
I wouldn't be so sure Sir. What you are trying to say is China selling USD to engage in Europe. But the most important country for China is US since Chineese currency reserves counts 2 trillions of US Dollars and they are the biggest Chineese importer having problems though.
 
 
  • Comment #9
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  • Nov 16, 2011 4:08am Nov 16, 2011 4:08am
  •  Guest
  • | IP XX.XX.242.12
This article must be a joke, or the writer has not been listening to what several ECB officials have already stated. They said that are limited in what they can do to stop the euro zone debt crisis, other than interest rates which is still limited.

It is not a matter of printing money to stop this crisis, it is a matter of socialistic ways that are not sustainable. Printing more Euros will only make it worse, since it will lead to hyper-inflation. Germany should already know about that from their own history.
 
 
  • Comment #10
  • Quote
  • Nov 16, 2011 7:10am Nov 16, 2011 7:10am
  •  Hareii
  • | Joined Jun 2011 | Status: Member | 840 Comments
Quoting cichy
Disliked
Sure, they need a lot of time to print all these euros.
Ignored
They don't. All they need to do is to commit to print massive amount of new EUR and register that amount in their accounting holding. Money need not necessary be in material form. Today, all massive money transaction are via electronic means. Material representation of currency in paper form constituents only a small fraction of the entire money pool out there.
 
 
  • Comment #11
  • Quote
  • Nov 16, 2011 7:20am Nov 16, 2011 7:20am
  •  cichy
  • | Joined Aug 2011 | Status: Proud dad | 283 Comments
So the last boundary for unlimited money has been broken...
 
 
  • Comment #12
  • Quote
  • Nov 16, 2011 11:51am Nov 16, 2011 11:51am
  •  gj6n68
  • | Joined Feb 2011 | Status: Member | 6 Comments
Pardon me, but isn't it true that unless the countries fundamentally start production they won't be able to get rid of their deficit ?? Isn't it simple that to make money you need to have some product or service to offer and make money for yourself ???

Shouldn't this be addressed in first place??
 
 
  • Comment #13
  • Quote
  • Nov 16, 2011 12:32pm Nov 16, 2011 12:32pm
  •  Gothamcity
  • | Joined Sep 2009 | Status: Member | 19 Comments
The problem is interest itself and fractional reserve banking.
If the big banks were to share the risk with the entities they are bankrolling, they wouldn't give out lavish loans to every nation.
If the bank knows that it's gonna collect interest no matter what, it will try to fund everything with no reserves.
The financial system of the world is a one big joke. It's designed
for the richest to ruthlessly exploit the middle and low classes.
5 - 10 years from now there will be no europe union.
 
 
  • Comment #14
  • Quote
  • Nov 16, 2011 1:47pm Nov 16, 2011 1:47pm
  •  clockwork71
  • | Commercial Member | Joined May 2007 | 1164 Comments | Online Now
If you ever wanted proof that FX is a manipulated market, look at 1.35 and think about whats been going on in the EUR/USD
 
 
  • Comment #15
  • Quote
  • Nov 16, 2011 3:24pm Nov 16, 2011 3:24pm
  •  Al_Xdarriaga
  • | Joined Feb 2010 | Status: Member | 18 Comments
If it was that easy, Why they haven't act and let the markets plunge so many times with other countries? Of course it's sounds so easy to print money but ECB has several political and fundamental restrictions on that issue. This article's title and information is not true.
 
 
  • Comment #16
  • Quote
  • Nov 16, 2011 3:42pm Nov 16, 2011 3:42pm
  •  Colbolt2
  • | Joined Nov 2005 | Status: Member | 1 Comment
If you ever wanted proof that FX is a manipulated market, look at 1.35 and think about whats been going on in the EUR/USD

I see price hitting a major resistance. What more should I see, please?
 
 
  • Comment #17
  • Quote
  • Nov 16, 2011 5:10pm Nov 16, 2011 5:10pm
  •  Hareii
  • | Joined Jun 2011 | Status: Member | 840 Comments
ECB only exist when eurozone exists. Eurozone collapse, ECB cease to exist. ECB is saving its own a$$ by helping out. Unless Germany really want eurozone to collapse, ECB will ultimately come in to monetarize the debt. However, that is to be used as the last resort. In the meantime, all denials of ECB as lender of last resort are just rhetoric to put pressure on the PIIGS nations.

Just like the democrats and republicans will never agree on anything till the last second of the deadline, eventually they will still compromise to some agreements before the deadline. The same applies to ECB stepping in to help only at the last resort.
 
 
  • Comment #18
  • Quote
  • Nov 17, 2011 1:02am Nov 17, 2011 1:02am
  •  clockwork71
  • | Commercial Member | Joined May 2007 | 1164 Comments | Online Now
Quoting Colbolt2
Disliked
If you ever wanted proof that FX is a manipulated market, look at 1.35 and think about whats been going on in the EUR/USD

I see price hitting a major resistance. What more should I see, please?
Ignored
The word you are looking for is support. And the point that the whole world is bearish the EUR, and it can't fall.....odd really.
 
 
  • New Comment
  •  Guest
  • | IP XX.XXX.249.141
Join FF
  • Story Stats
  • Posted: Nov 16, 2011 2:58am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 18  /  Views: 4,759
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