Morons:

US, Europe Face More Ratings Downgrades in Coming Years
The US tops the list of downgrade candidates because its debt and deficit troubles are unlikely to be resolved with the political infighting in Washington, a new study says.

Total nonsense.
The do have their own currency, last I checked.

Sweden Should Sell More Bonds to Tap Foreign Demand, SEB Says

Jan 19 (Bloomberg) — Sweden should borrow more to take advantage of demand and increase investments in the largest Nordic economy, SEB AB Chief Economist Robert Bergqvist said.

The Nordic region has emerged as a haven as European leaders struggle to contain a sovereign debt crisis now in its third year. Swedish 10-year bonds are trading at a yield of 14 basis points less than benchmark German debt as of 10:56 a.m. in Stockholm.

“If you look at other countries in Europe that now must save money, cut budget deficits and bring down government debt, in Sweden we can make investments for the future, so I hope the government is using this very nice situation to borrow money to make investments in infrastructure, education,” Bergqvist said in an Jan. 17 interview Stockholm. “This would strengthen the Swedish position in the long term.”

Some foreign investors are concerned about the level of liquidity in the market, he said. “They want to see more government debt.”

*DJ Fed’s Bullard: Best To Leave Economic Stimulus To Fed
*DJ Bullard: Fed Can Stimulate Even When Rates Are At Zero Percent
*DJ Bullard: Fed Potency Negates Need For Government Stimulus
*DJ Bullard: Monetary Policy Has Been Appropriate

That means he’s pleased with the outcome of the last three year’s policies???

He’s satisfied with current conditions???

http://bilbo.economicoutlook.net/blog/?p=17528

http://www.economist.com/node/21542174

The initial rate on the 3 year LTRO was reported to be ‘fixed’ at 1%, but turns out it adjusts with the policy rate and will be an average of the policy rate over the three year term.

So it doesn’t fix rates for the banks, it just ensures funding at the policy rate. Which makes sense, as the bank’s cost of funds is the policy instrument of the ECB.

Also interesting is how in the case of bank defaults the member nations guarantee the bank deposits. But those member nations get their funding from bond sales. And with the weaker ones that means bond sales to the ECB. So in that sense, the ECB is backing bank deposits. Which means when it provides liquidity and takes collateral, should the bank subsequently realize losses, causing the ECB to realize losses on the funds provided to the bank for liquidity, the member nation would then sell bonds to the ECB to get the funds to pay for the loans it got from the ECB.

Again, it all comes down to the ECB writing the check. And it all works from a solvency point of view when the ECB writes the check. And the ECB writing the check introduces a serious moral hazard issue. Hence the (over) emphasis on austerity.

“Give a man a fish, feed him for a day,
teach a man to fish,
and he spends the rest of his life on a boat drinking beer”

Fish 24:7