Whoa: ECB bailout move…Significant, or more hand waving?

[Coronita]

Whatcha guys think about this kicking the can down the road approach latest iteration??

[livinincali]

Probably buys 2 or 3 months at best, but I’m guessing more like 2-3 weeks. Each effort has a shorter and shorter success period.

[spdrun]

Euro is at ~1.265, not too far from the 2010 lows. Not much effect, though it will pop stocks temporarily.

[briansd1]

The Europeans have nobody but themselves to blame.

It should not be lost on us that, in America, Republican ideas are the same as the policies in Europe — austerity and cuts that lead to economic decline.

The Washington Post: In euro crisis, U.S. lessons unlearned

U.S. steps to end its financial crisis were controversial — but came quickly and with money attached. Not so in Europe..

http://www.washingtonpost.com/business/economy/in-euro-crisis-us-lessons-unlearned/2012/09/04/c6b2989a-f1e7-11e1-adc6-87dfa8eff430_story.html/?wprss=rss_MobileTopStories&wpmk=MK0000200

[sdduuuude]

[quote=briansd1]The Europeans have nobody but themselves to blame.

It should not be lost on us that, in America, Republican ideas are the same as the policies in Europe — austerity and cuts that lead to economic decline.[/quote]

The only response this merits is: BULLSHIT

[briansd1]

The ECB action is a too late. But it’s still a big boost to the market.

This is something that economists agreed the ECB should have done. Had the ECB acted earlier, Europe might have avoided recession.

We know that investors will be testing the ECB’s resolve. Let’s see how the ECB implements this new policy.

http://www.washingtonpost.com/business/economy/ecb-loads-the-big-bazooka/2012/09/06/a4ff5a2a-f814-11e1-8b93-c4f4ab1c8d13_story.html?hpid=z1

[briansd1]

[quote=sdduuuude][quote=briansd1]The Europeans have nobody but themselves to blame.

It should not be lost on us that, in America, Republican ideas are the same as the policies in Europe — austerity and cuts that lead to economic decline.[/quote]

The only response this merits is: BULLSHIT[/quote]

For one, please be specific and explain the Republican war on on the Federal Reserve.
http://www.tnr.com/article/politics/95388/why-did-republicans-turn-against-the-fed#

The markets responded positively to Fed and ECB announcements and actions. Shouldn’t that be free market validation of their policies?

[livinincali]

[quote=briansd1]The ECB action is a too late. But it’s still a big boost to the market.

This is something that economists agreed the ECB should have done. Had the ECB acted earlier, Europe might have avoided recession.

We know that investors will be testing the ECB’s resolve. Let’s see how the ECB implements this new policy.

[/quote]

I can’t wait until this action fails and the Keynesians claim unlimited bond purchases wasn’t big enough.

[briansd1]

[quote=livinincali]
I can’t wait until this action fails and the Keynesians claim unlimited bond purchases wasn’t big enough.[/quote]

The bond purchases have political conditions attached so they are not unlimited.

Let politics (especially German politics) get in the way of central banking and the results might not be pretty.

http://www.washingtonpost.com/business/economy/ecb-loads-the-big-bazooka/2012/09/06/a4ff5a2a-f814-11e1-8b93-c4f4ab1c8d13_story.html?hpid=z1

The key to moving markets it to take bold action and make speculators take a big bath. Speculators don’t have the wherewithal to fight the central bank.

Europeans have been dithering with half-way measures that always come too late.

[livinincali]

[quote=briansd1]
The bond purchases have political conditions attached so they are not unlimited.

Let politics (especially German politics) get in the way of central banking and the results might not be pretty.

http://www.washingtonpost.com/business/economy/ecb-loads-the-big-bazooka/2012/09/06/a4ff5a2a-f814-11e1-8b93-c4f4ab1c8d13_story.html?hpid=z1

The key to moving markets it to take bold action and make speculators take a big bath. Speculators don’t have the wherewithal to fight the central bank.

Europeans have been dithering with half-way measures that always come too late.[/quote]

So it looks like we’ve already figured out all the excuses we’re going to use for why it doesn’t work. We know it isn’t going to work because the ECB has no idea how it’s going to sterilize the unlimited bond purchases. Therefore the ECB isn’t actually going to do unlimited bond purchases and since they aren’t going to actually do that, it won’t be long before the market figures it out and rates go back up again.

All these countries with too much debt have a solution. Default and stop spending more than you take in in taxes. Yes it will be painful but you can’t spend more than you take in in taxes forever anyways. This is very simple math and people try to make it complicated so the general population doesn’t understand they’re being looted. Governments and economists are always trying to conjure up free lunches and use complicated monetary policy so you can’t figure out where that free lunch came from, but it did indeed come from somebody and somebody didn’t get compensated for it.

[LesBaer45]

[quote=flu]Whatcha guys think about this kicking the can down the road approach latest iteration??[/quote]

To kick the can down the road, you must first position it for the kick.

This is merely setting the can into the upright position in preparation for the act of kicking it.

“This business will get out of control. It will get out of control and we’ll be lucky to live through it.”

[paramount]

As yahoo financial pointed out yesterday, current action on the stock market is perverse: bad news is really good news!

Just pay attention to the gold price, a more truthful barometer.

[paramount]

BTW, I have a feeling we’ll get strong employment numbers tomorrow.

Just like the bump today that coincided with Obama’s speech, it’s all contrived.

[briansd1]

Had the ECB announced bond purchases at the beginning of the crisis, the action would have been more effective.

Our Fed acted fast and decisively, even providing Dollars to foreign central banks. In contrast, the ECB was dithering while the economy was deteriorating. That’s the difference.

[spdrun]

ECB did the correct thing. Why should the Germans be punished for what the ignorant f**ks in Ireland and Southern Europe f**ked up? The only incorrect dithering is the dithering on kicking the Greeks, Irish, Italians, and Spaniards right out of the Euro.

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