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FSN: Europe Has Two Potential “Hail Mary” Passes … Would Either of Them Work?
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
by Graham Summers
Gains Pains Capital
Mario Draghi claims he can save the Euro.
I don’t buy it… even for one second. As far as I can see the ECB has one of two “Bail Mary” options. They are:
1) Massive money printing and buying of sovereign debt
2) The issuance of Euro-bonds along with across the board banking backstops.
As I noted in a recent article, #1 is impossible. If the ECB does this it will implode the bond market, which means GAME OVER for all intervention. Look at the impact QE had on Treasuries and you’ll see what I mean. And that’s Treasuries we’re talking about… not PIIGS debt.
Now let’s consider the ECB’s second “Hail Mary” option: the issuance of Euro-bonds and across the board backstopping of EU banking deposits.
Continue Reading at GainsPainsCapital.com…
2012-08-15 21:10:37
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