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ECB already implicitly backs every country's bonds. They just need to stick to their stance. After the crisis is over there will be time to work out the cost sh
by fspeech 7y ago
ECB already implicitly backs every country's bonds. They just need to stick to their stance. After the crisis is over there will be time to work out the cost sharing among European countries.
- handedness 7y agoThat is a completely hollow guarantee, though. The ECB's balance sheets are bad enough as it is, and one country's "cost sharing" is another country's forced-austerity to bail out another country's bad loans. The Eurosystem has serious issues that are about to get even worse. The ECB is practically insolvent by their own standards, and would be technically insolvent by American standards.