Central Banks Do Nothing, Promise More

From marctomarket.com

The ECB has disappointed the market who expected some action after Draghi's strong comments last week. In anticipation the euro was briefly taken through the $1.24 level only to be sold down to new lows for the week, below $1.22. Draghi did not break new ground. He reiterated what was already known. Countries need to formally request EFSF support to activate it. The ECB cannot and replace government action. Spain is understandably reluctant to ask due to potential conditionality and stigma associated. Draghi did suggest the subordination/seniority issue will be addressed. Draghi tried to deliver a fait accompli to ... (full story)