From Bloomberg: In the latest episode of Europe’s repetitive
debt drama, after seeming to get better for a few weeks, things got really ugly
again, with Spanish and Italian bond yields spiking to record highs. Markets
tumbled. Then, just when things looked like they couldn’t get much worse, a
European leader stepped in with some aggressive comments about how he’ll do
everything necessary to make things better. Markets rejoiced. Sound familiar?
During a speech at the Global Investment Conference in
London today, European Central Bank President Mario Draghi said the ECB is
“ready to do whatever it takes to preserve the euro.” He added: “Believe me, it
will be enough.” World markets breathed a collective sigh of relief and
embarked on a thundering rally. Japan’s Nikkei stock average rose 0.9 percent.
The Dow ticked up 1.37 percent before noon. Stocks in France, Germany, Britain,
and Brazil were all positive. The big winner? Spain’s Ibex, which increased a
whopping 6 percent.
But then, what did we think Draghi was going to say? That
the euro is doomed, and there’s nothing to do about it? …
Wait...wait...there's more at http://www.businessweek.com/articles/2012-07-26/will-draghi-put-his-money-where-his-mouth-is
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