Friday, September 7, 2012

Drastic Measures To Save The Euro

Thursday was a busy day for Mario Draghi (second from right), seen here as he arrives for the M100 Media Prize award ceremony in Potsdam with German Finance Minister Wolfgang Schäuble (left). Reuters

No Limits: ECB President Draghi Reaches For The Bazooka -- Spiegel Online

European Central Bank President Mario Draghi has taken a bold step this week to contain the euro crisis. The ECB is now planning unlimited bond purchases in order to prevent an escalation of the euro's woes. The step marks a fundamental shift in efforts to save the common currency -- and comes with plenty of risks.

The big moment almost fell through at the last minute. Thirty minutes before Mario Draghi planned to announce a turning point in the two-and-a-half year drama to rescue the euro, the fire alarm in the Euro Tower in Frankfurt went off. The elevators in the entire European Central Bank headquarters were placed out of service and two fire trucks arrived at the scene. It turned out to be a false alarm and the emergency vehicles drove away a short time later.

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My Comment: Some believe that this will save the euro .... others are more cautious. What's my take .... the ECB is doing the dirty work for the governments of Europe. If the Euro countries cannot control their spending, increase economic output, and bring down their debts .... this exercise will only aggravate and worsen the crisis next year. What's my prediction ..... my money is on the crisis getting worse.

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