Thursday, 6 September 2012

As You Were

Nothing unexpected will come from the press conference on measures to halt unjustified (by the underlying condition of their economies) spreads.  As the Bank of Italy has noted, the spread should be 200 not 400 (or worse).  Spain?  a bit shakier but not a lot.

It was settled at the beginning of August: the objectives are to end speculative frenzy centred on the collapse of the euro - it really is irreversible in terms of institutions, political settlements and contracts, it's not going to go away short of wholesale meltdown far beyond financial,  and economic, sectors in its effects -  and to deliver the ECB's monetary policy to all parts of the eurozone in something approaching equal measure.

Italian spread at under 400 now; the Euro rising strongly.

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