Wednesday, June 9, 2010

Return on ECB's $1 Trillion shrinking?

In only 3 weeks some of the PIIGS countries are finding their yields pushed up at levels higher than BEFORE the ECB intervened via quantitative easing. And for the first time -- in a long time -- demand for German bonds barely exceeded the supply. If Germany is having trouble, can PIIGS fly?

Various sources are reporting attempts at brokering a big quantitative easing plan for the Eurozone -- to be announced before the end of June G20 meetings. US Treasury Secretary Geithner suggested that European countries need a further stimulus plan, greater easing, and generally more measures that raised debt. The Atlantic Ocean is starting to represent a big ocean between the economic philosophy of the allies. Stay tuned.


Graph via he FT


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