Comments on: Hanging In The Balance Over At The ECB http://fistfulofeuros.net/afoe/hanging-in-the-balance-over-at-the-ecb/ European Opinion Sat, 26 May 2012 06:54:27 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Bengt Larsson http://fistfulofeuros.net/afoe/hanging-in-the-balance-over-at-the-ecb/comment-page-1/#comment-29629 Bengt Larsson Fri, 05 Mar 2010 10:30:33 +0000 http://fistfulofeuros.net/?p=7054#comment-29629 @jon livesey: one of us seems to lack self-control. @jon livesey: one of us seems to lack self-control.

]]> By: jon livesey http://fistfulofeuros.net/afoe/hanging-in-the-balance-over-at-the-ecb/comment-page-1/#comment-29609 jon livesey Thu, 04 Mar 2010 18:49:37 +0000 http://fistfulofeuros.net/?p=7054#comment-29609 "Well, the ECB is banned from intervening directly to save Greece." That's a sweet thought, but it's tantamount to saying that the ECB is banned from intervening to prevent the Euro from coming apart at the seams. We all know the Euro is a political enterprise, not an economic or legal one. That is exactly why rules don't matter here any more than they matter when everyone needs to violate the 3%/60% "rule". If you could run a currency using rules, you would hardly need a central bank. I think I'll stick with common sense. If they aren't making any public announcements, it's because the are sitting with their heads in their hands trying to imagine the worst case outcome from any move they make. “Well, the ECB is banned from intervening directly to save Greece.”

That’s a sweet thought, but it’s tantamount to saying that the ECB is banned from intervening to prevent the Euro from coming apart at the seams.

We all know the Euro is a political enterprise, not an economic or legal one. That is exactly why rules don’t matter here any more than they matter when everyone needs to violate the 3%/60% “rule”. If you could run a currency using rules, you would hardly need a central bank.

I think I’ll stick with common sense. If they aren’t making any public announcements, it’s because the are sitting with their heads in their hands trying to imagine the worst case outcome from any move they make.

]]> By: Bengt Larsson http://fistfulofeuros.net/afoe/hanging-in-the-balance-over-at-the-ecb/comment-page-1/#comment-29605 Bengt Larsson Thu, 04 Mar 2010 11:22:15 +0000 http://fistfulofeuros.net/?p=7054#comment-29605 Well, the ECB is banned from intervening directly to save Greece. The consequences of a default are known and the problem is one of moral hazard, of states. Ie, it's a political question. It's not so odd that the ECB doesn't speak much on that. Well, the ECB is banned from intervening directly to save Greece. The consequences of a default are known and the problem is one of moral hazard, of states. Ie, it’s a political question. It’s not so odd that the ECB doesn’t speak much on that.

]]> By: Bob_in_MA http://fistfulofeuros.net/afoe/hanging-in-the-balance-over-at-the-ecb/comment-page-1/#comment-29597 Bob_in_MA Wed, 03 Mar 2010 22:02:40 +0000 http://fistfulofeuros.net/?p=7054#comment-29597 There is something odd about the fact manufacturing PMIs in just about everywhere on the planet have been positive for the last six months and yet copper inventories have surged over that period: http://www.investmenttools.com/futures/metals/Base_Metals_Inventory_London_and_Shanghai.htm#total_copper I wonder if we pay too much attention to what may just be a reversion to a mean? There is something odd about the fact manufacturing PMIs in just about everywhere on the planet have been positive for the last six months and yet copper inventories have surged over that period:

http://www.investmenttools.com/futures/metals/Base_Metals_Inventory_London_and_Shanghai.htm#total_copper

I wonder if we pay too much attention to what may just be a reversion to a mean?

]]> By: jon livesey http://fistfulofeuros.net/afoe/hanging-in-the-balance-over-at-the-ecb/comment-page-1/#comment-29595 jon livesey Wed, 03 Mar 2010 18:58:44 +0000 http://fistfulofeuros.net/?p=7054#comment-29595 I think the silence is because the big players are looking into the abyss. The Greece affair has made it clear that structural Euro issues can't be ignored any longer. Either the Euro membership list has to be pruned, or a system of fiscal transfers has to be introduced, with all that implies for the German taxpayer. I would take my time over a decision like that. I think the silence is because the big players are looking into the abyss. The Greece affair has made it clear that structural Euro issues can’t be ignored any longer. Either the Euro membership list has to be pruned, or a system of fiscal transfers has to be introduced, with all that implies for the German taxpayer.

I would take my time over a decision like that.

]]> By: Al http://fistfulofeuros.net/afoe/hanging-in-the-balance-over-at-the-ecb/comment-page-1/#comment-29594 Al Wed, 03 Mar 2010 18:03:12 +0000 http://fistfulofeuros.net/?p=7054#comment-29594 Is there any reason why your European PMI roundups never include the UK? Last month’s manufacturing (56.6) and services (58.4) figures were both quite buoyant, the latter unexpectedly so, which might seem worthy of comment. Or is it a Eurozone thing? Is there any reason why your European PMI roundups never include the UK? Last month’s manufacturing (56.6) and services (58.4) figures were both quite buoyant, the latter unexpectedly so, which might seem worthy of comment. Or is it a Eurozone thing?

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