If the Spanish banking system is now capital constrained with regard to buying more Spanish govt debt, liquidity adjustments by the ECB won’t matter. In my opinion, global markets are not even close to discounting the systemic risk, as they are over discounting the capability of central bankers to deal with what might happen.
Been moving up steadily all day and since they announced they were ok missing their deficit targets a few days ago. > > (email exchange) > > On Tue, Mar 13, 2012 at 1:48 PM, wrote: > > But that’s OK. I’m sure they’ll make good next year! > Give me a euro loan today for deficit reduction […]