Michael Cartine' s stories
Further thought about a “separate interest rate band” proposal from the European Central Bank suggests it would indeed be impractical.Consider that lower rates for weaker economies against a higher rate (presumably the 1.25% Refi Rate) for stronger economies would invite counter-productive capital flows or even capital flight.
Market participants in a broader sense are finally s
More headlines and stories are pouring out giving more details regarding both the restructuring of Greek debt and the plans for “leveraging” the EFSF, making it appear that concrete decisions are finally starting to take shape. Potentially this will bring more “risk-on” trading, but IFR again cautions the solutions being discussed do not at all address the underlying problems with the Euro’s faulty architecture.