<< <i>Draghi claims he is going to sterilize his purchases.
Well, if you're buying the debt of Spain, Italy and potentially France (not to mention Portugal or Greece), there is a lot more problem debt to buy than there is debt you would be able to sell, such as Germany's or Sweden's, or the bonds of some other, more fiscally prudent country. And you obviously can't be selling the same government's debt you are buying and expect to provide any relief.
That means it simply can't happen. Obviously, when you contemplate unlimited purchases, you need to realize that it is literally impossible for you to sell an unlimited quantity. It doesn't even work in theory, and in practice it really won't work. Draghi claims he is going to sterilize his purchases.
Is this something that everyone needs to catch on to and will it bring the stock market back down again including PMS? >>
Reading from what I posted, it doesn't appear like they are going to buy any more bonds than they can sell. If this is their ploy, it doesn't really add any money/stimulas to their economy. It might move funds to one area from another but will this stimulas be short lived once everyone catches on that no new money is entering the economy?
The more qualities observed in a coin, the more desirable that coin becomes!
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The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
<< <i>Draghi claims he is going to sterilize his purchases.
Well, if you're buying the debt of Spain, Italy and potentially France (not to mention Portugal or Greece), there is a lot more problem debt to buy than there is debt you would be able to sell, such as Germany's or Sweden's, or the bonds of some other, more fiscally prudent country. And you obviously can't be selling the same government's debt you are buying and expect to provide any relief.
That means it simply can't happen. Obviously, when you contemplate unlimited purchases, you need to realize that it is literally impossible for you to sell an unlimited quantity. It doesn't even work in theory, and in practice it really won't work. Draghi claims he is going to sterilize his purchases.
Is this something that everyone needs to catch on to and will it bring the stock market back down again including PMS? >>
Reading from what I posted, it doesn't appear like they are going to buy any more bonds than they can sell. If this is their ploy, it doesn't really add any money/stimulas to their economy. It might move funds to one area from another but will this stimulas be short lived once everyone catches on that no new money is entering the economy?
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection
The more qualities observed in a coin, the more desirable that coin becomes!
My Jefferson Nickel Collection