ECB will do "whatever it takes" to save Euro

Graham_Devon

Is this a scary, or a good thing?

Suggesting the ECB will simply do anything it takes to save the euro has sent bonds down and markets up, for instance the CAC40 is up over 3% on the back of it. But surely this is inherantly dangerous?

Whatever it takes could be anything, but definately included is "taking action to reduce government bonds".

It also suggests unlimited bailouts and ever increasing time to repay debts, I would assume, considering this is first and foremost what a lot of the countries need?

Speaking at a conference in London marking the start of the Olympics, Mr Draghi said he would do whatever was necessary to stop the eurozone falling apart, including taking action to lower government borrowing costs.

He said: "Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough."

He added that the single currency was irreversible.

http://www.bbc.co.uk/news/business-18998083

I'm stuggling to figure out if it's good, or we should be wary?

Wookster

Look, before our eyes, Europeans are creating Zombies.

shortchanged_2

Thank god, all this Europe debacle is finally over. :j

Mrs_Bones

If the ECB will do "what ever it takes" to save the Euro, why haven't they done it up to press? They can talk about unlimited bailouts but they simply haven't got the money for them. How much time your given to pay debts normal depends on the one you've borrowed from. They've done everything they can to drag everyone else into it from going cap in hand around the countries of the world in order to not have to cover the cost of their own mess.

If they think they can save the Euro they should get on with it without expecting other countries who are not part of the currency to chip in and that includes the IMF who were not set up to bail out failed and badly constructed currencies.

Graham_Devon

Mrs_Bones wrote: »

If the ECB will do "what ever it takes" to save the Euro, why haven't they done it up to press? They can talk about unlimited bailouts but they simply haven't got the money for them. How much time your given to pay debts normal depends on the one you've borrowed from. They've done everything they can to drag everyone else into it from going cap in hand around the countries of the world in order to not have to cover the cost of their own mess.

If they think they can save the Euro they should get on with it without expecting other countries who are not part of the currency to chip in and that includes the IMF who were not set up to bail out failed and badly constructed currencies.

"Whatever it takes" would presumably include printing money? Therefore "solving" a lot of the problems you speak of. Print the money, bail out with the printed money.

It's certainly included under the "whatever" umbrella!

Mrs_Bones

Graham_Devon wrote: »

"Whatever it takes" would presumably include printing money? Therefore "solving" a lot of the problems you speak of. Print the money, bail out with the printed money.

It's certainly included under the "whatever" umbrella!

Agree with that, but think they may have a hard time getting it sanctioned by Germany, though Merkel may be a dead duck walking anyway come the next election so maybe she's got nothing to lose.

pqrdef

Graham_Devon wrote: »

"Whatever it takes" would presumably include printing money?

But does printing save the euro? Fiat currencies depend on the credit-worthiness of central banks, which in turn depends on the economies and political institutions behind them. But the credit of the ECB is something of an unknown quantity, given that the political clout behind it is weak at best and may be quite unreliable.

Or one might think that doing what it takes to save the euro might mean kicking a few countries out.

The_White_Horse

it's a farce. the euro is dead. the politicians are keeping it on life support to keep their noses in the troughs. if they start printing, then it'll be a wheelbarrowfull of notes for a loaf of bread.

MacMickster

Another one of those aspirational speeches from a Eurocrat without any element of detail.

The markets across Europe reacted positively but if, as I suspect, there turns out to be little substance behind this latest kick of the can, then watch them react even more negatively within the next week or two - maybe even sooner if German reaction to the statement is seen to be less than ecstatic.

chewmylegoff

European Central Bank in "we will do anything to save the Euro" shocker.

Think about it - no Euro, no Central Bank. Hardly a surprise to hear that they want to keep their jobs and will do anything it takes to make sure that happens!!

Whatever next? Teachers saying that they think schools are a good idea?

shortchanged_2

You can be certain of one thing that some people are making lots of money from all these announcements that seem to send stock markets making quite big gains.

I wonder if Mr Draghi's family and friends were pre warned about this little announcement?