Same Fix, Different Market Reaction
Just an observation on the market reaction on EU rescue package. When elsewhere in the world central banks buy worthless paper it’s apparently good for the markets, but when ECB (the most prudent among them) is pressured to buy, it’s apperently not good enough to reassure the markets.
Although, I believe that it would be better both for Greece and the world, that Greece was left to default and have it’s debt restructured, recent events have introduced new positive moments. EMU countries and the ECB have made it clear that they will do whatever it takes to avoid an EMU country default and that some kind of joint fiscal system is an option. By the recent measures a common guarantee of debts is introduced, maybe a step towards fiscal union.
Not to mention that EMU debt levels are bearable if we compare it with the rest of the globe.