MercoPress. South Atlantic News Agency

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  briton

  A great move,
  
  alas, it does not solve the underlying problems,
  if the banks are scared to lend in case they lose it,, they wont lend,
  its that simple, perhaps if the ECB guranteed the loan, then perhaps, it might work,
  
  still time will tell,
  come next week, give it a while and see what happens .

  Jul 12th, 2012 - 10:47 pm - Link - Report abuse 0
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  JoseAngeldeMonterrey

  And what if European financial institutions, business enterprises and individuals chose to look overseas instead of putting the money into recessionary and high-risk European economies? What if they take their music to Brazil, Mexico, Peru, Indonesia, Colombia, these are all countries with better economic outlook than any most European nations and all of them offer above 5% rates.
  
  And what is the ECB going to do in the event of a new black swan in the form of Italy or France? with zero interest rates the ECB and Europe have ran out of monetary policy options.
  
  The US is not better either, with an interest rate of 0.25% they have nowhere to go either, they went from almost 20.0% in 1980 to almost nothing in 2012, Alan Greenspan became the hero of the Clinton era, but he indulged in cuts and cuts, to fix every single little economic slump, via monetary policy and please the markets who happily rushed every time to cash in their stocks, of course he was a hero, and many warned him at the time that he was leaving the FED without any tools when future crisis came, he and Clinton behind him argued that they were all in the famous “new economy”. It turns out they were not. Bernanke came and continue playing the good kid in the block, and silly European central bankers only danced the same song, now both the FED and the ECB are useless. And where will Wall Street and the investor community find solace? China´s banking system in the ropes too.
  
  Spain, England, France, Italy, Portugal, etc, they could privatize thousands of useless and futile assets, including expensive European television and radio stations that produce boring content that nobody in the world buys.
  Now that that central banks are but ornate institutions of 0.0% rates, the ball is now on the field of politicians the like of Angela Merkel, Mariano Rajoy and François Hollande, sadly, characters completely unprepared and unwilling to face the challenges ahead. Goodbye good old days.

  Jul 13th, 2012 - 03:00 am - Link - Report abuse 0
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  Ayayay

  GREAT analysis & interesting countries to mention! The CMA sovereign risk report q3 mentions them too. Greece, Cyprus, Argentina, Portugal, Pakistan are the top 5 at risk worldwide.
  
  Privatisations could help, kinda interesting considering. :)

  Jul 13th, 2012 - 06:26 pm - Link - Report abuse 0
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