The European Central Bank (ECB) has come to the rescue! On Friday, they announced a separate permanent fund to buy €500 billion worth of national bonds from EU member nations. Markets were up worldwide in response to news that the Euro would be preserved and stabilized. It’s nothing but good news all around! Right?
Not so fast. Like all good news these days, it has its roots in bad news. Two days earlier, the German government was unable to sell enough bonds at auction, as demand fell for anything tied to the Euro. Bailing out Greece or Spain was never really on the table, but bailing out Germany is a priority for the Frankfurt based ECB. And this starts the twisted and difficult tale of the bailout that may or may not culminate in the closing chapter of the Eurosaga that has plagued markets for over four years.
Barataria - The work of Erik Hare 