Comments on: ECB meeting preview / ECB intervention? http://moslereconomics.com/2010/05/06/ecb-meeting-preview-ecb-intervention/ St Croix, United States Virgin Islands Thu, 09 Feb 2012 07:42:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: ESM http://moslereconomics.com/2010/05/06/ecb-meeting-preview-ecb-intervention/comment-page-1/#comment-19644 ESM Thu, 06 May 2010 22:17:35 +0000 http://moslereconomics.com/?p=10242#comment-19644 Yes, I believe you're right. I'm not sure why Warren doesn't recognize the fact that buying in the secondary market is simply an inefficient form of buying in the primary market (it allows financial intermediaries to earn a bid/offer spread). Secondary market buying would aid Greece by facilitating new bond issuance at a lower interest rate. If the ECB is allowed by law to do this, it certainly seems like a large loophole it could exploit to save Greece in the short-term. Yes, I believe you’re right. I’m not sure why Warren doesn’t recognize the fact that buying in the secondary market is simply an inefficient form of buying in the primary market (it allows financial intermediaries to earn a bid/offer spread). Secondary market buying would aid Greece by facilitating new bond issuance at a lower interest rate. If the ECB is allowed by law to do this, it certainly seems like a large loophole it could exploit to save Greece in the short-term.

]]> By: Curious http://moslereconomics.com/2010/05/06/ecb-meeting-preview-ecb-intervention/comment-page-1/#comment-19628 Curious Thu, 06 May 2010 18:36:34 +0000 http://moslereconomics.com/?p=10242#comment-19628 "It doesn’t solve much any more than the Fed buying Lehman bonds in the secondary market would have helped Lehman." Wouldn't the ECB buying Greek bonds bring down yield on those bonds, which in turn would allow Greece to refinance without any help from the EU/IMF? “It doesn’t solve much any more than the Fed buying Lehman bonds in the secondary market would have helped Lehman.”

Wouldn’t the ECB buying Greek bonds bring down yield on those bonds, which in turn would allow Greece to refinance without any help from the EU/IMF?

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