Comments on: ECB notes?

By: WARREN MOSLER

WARREN MOSLER — Fri, 03 Aug 2012 00:44:08 +0000

qed
;)

By: WARREN MOSLER

WARREN MOSLER — Fri, 03 Aug 2012 00:30:20 +0000

yes!

By: WARREN MOSLER

WARREN MOSLER — Fri, 03 Aug 2012 00:27:20 +0000

not if they get liquidity at the ECB at its target rate

By: Matt Franko

Matt Franko — Thu, 02 Aug 2012 15:29:51 +0000

@Crake, Not even this “light bulb” seems to be bright enough to enlighten these morons:

http://mikenormaneconomics.blogspot.com/2012/04/still-going.html

;) Rsp,

By: Tom Hickey

Tom Hickey — Thu, 02 Aug 2012 15:21:39 +0000

@Crake,

Yes, but with the bond market “defying all logic” you’d think that at least financial types would have figured this out by now. Not those sharp tacks at Zero Hedge and many money managers, tho. The obvious often escapes notice when cognitive bias is strong.

And why have most economists not figured out by now that amoral rational utility maximization over a lifetime assuming a representative agent is elegantly simple and also empirically simplistic due to, e.g, non-ergodicity, ontological and epistemological uncertainty, reflexivity and feedback, cognitive-affective bias, subjective framing, institutional and social factors, and fallacies of composition.

The human mind is a quirky device.

By: Jacob Goense

Jacob Goense — Thu, 02 Aug 2012 13:47:08 +0000

@Keith Newman, They already do. Problem is they are perpetual zero-coupon bearer bonds.

By: Crake

Crake — Wed, 01 Aug 2012 21:34:36 +0000

It could also make the light bulb go off in more people’s heads that these government securities are not loans but the private sector’s savings. Talking heads would wonder why the increased buying in these and corporation are bring back fund to Europe to put in these and why people are taking money out of European savings to buy them. Then they would hopefully come to the conclusion you pointed out – these instruments are safer and a guarantee. Then some of the bright ones would say to themselves, “hey, these people are not lending money; they are parking savings in these bonds.” Then the even brighter ones would say to themselves, “hey this is the same with other currency issuing nations that issue debt securities.” Then the really really bright ones would say, “hey no one is loaning the US et all money they are simply saving in these instruments – this debt is our savings.”

Yeah, world economy then saved!

By: Walid M

Walid M — Wed, 01 Aug 2012 18:04:40 +0000

Won’t this hurt the eu banks. .?

By: WARREN MOSLER

WARREN MOSLER — Wed, 01 Aug 2012 17:09:12 +0000

just some very casual discussion since the bond buying began

By: Keith Newman

Keith Newman — Wed, 01 Aug 2012 16:36:07 +0000

Warren,
Has the ECB indicated interest in issuing notes?