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Realistbear

Helicopter Angela Agrees To Bail Out Boost To Contain Crisis

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http://uk.finance.yahoo.com/news/EU-leaders-reach-deal-debt-tele-392002008.html?x=0

EU leaders reach deal on debt crisis
Philip Aldrick and agencies, 9:21, Saturday 12 March 2011
European leaders reached agreement in the early hours of this morning on how to tackle the debt crisis afflicting the nations using the single currency, with significant concessions from Germany.
"The fundamental path was hacked open," German Chancellor Angela Merkel said.
Along the way, Mrs Merkel made some serious concessions, which might cost her when she faces her electorate at home.
Together with her eurozone counterparts, Merkel agreed to boost the region's bailout fund, the European Financial Stability Facility (EFSF),
so it can lend the full €440bn
(£380bn) that it initially promised.
Up to now, the EFSF was only able to lend about €250bn because of several buffers required to get a good credit rating - fanning fears that it would not be big enough to save a large country like Spain.
The fund will also be allowed to buy the bonds of governments in financial difficulties on the open market, but only if the respective country is locked into a national bailout program based on strict conditions.
That step marks an important expansion in the fund's powers, since
buying bonds can help stabilize their prices and a country's funding costs.

I wonder if the next time they blame Ben for buying bonds (QE2) it will be a case of the saucepan calling the kettle fat?

440bn Euros = $607Bn (close to Ben's bond buying).

Edited by Realistbear

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"how to tackle the debt crisis"

how many times is this now they have tackled the debt crisis.....id say....a big FAT ZERO.

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I'm going to start a campaign - BRING BACK THE OLD BLOO LOO WE ALL KNOW AND LOVE!

ok, you bring back the polar bear, and you can have the blue man back.

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Is it money printing or is it basically being funded by German taxpayers?

I couldn't tell from the article, and I can't remember how the fund was set up initially.

http://www.bloomberg.com/news/2011-03-12/explosion-destroys-walls-of-japan-reactor-building-nhk-reports.html

Related News:Bonds .Europe Boosts Bailout Fund With ‘Firewall’ Bond Purchases, Eases Greek Aid
European leaders
widened the scope of the euro’s rescue fund, authorized it to buy government bonds
and eased the terms of Greek bailout loans as they unexpectedly pushed through fresh measures to end the bloc’s debt crisis.
Under a pact struck at 1:30 a.m. in Brussels after eight hours of talks, the bailout facility will now be able to spend its full 440 billion-euro capacity ($611 billion) and to buy bonds directly from governments. In a blow to European Central Bank President Jean-Claude Trichet, it won’t be allowed to purchase debt in the open market or to finance debt buybacks..../
“This is an important message on the political pledge of the euro members to fight for the euro’s stability,” German Chancellor Angela Merkel told reporters. “Everyone had to make a contribution
. I hope that this will also be a good message to the world in terms of the euro as a major currency.”

Looks like QE or pumping more money into the system without having worked for it. Angies' "hope" for the Euro will buy a little more time for the Euro which should get a boost based on the positive talk this weekend.

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http://www.bloomberg.com/news/2011-03-12/euro-declines-before-leaders-set-stage-to-address-debt-crisis-in-region.html

The euro dropped against most of its major counterparts
before
leaders of the 17 euro nations agreed to tighten economic cooperation,
clearing the way for a comprehensive package to counter the region’s debt crisis
.

Now that confidence has been restored and the crisis contained again the Euro should fly off the shelves on Monday. Nothing like a good old rousing talk to turn things around. Reminds me of Churchill and how a few phrases turned the tide of the war in our favour.

The "comprehensive package" is another word for QE IMO.

It is contained. Repeat after me: It is contained.........................

Edited by Realistbear

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Printy printy.

Sorry, someone had to ;)

Joking apart, do we all agree this is full blown QE in the Eurozone now?

I still dont know why they HAVE to roll over the bonds.....

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Merv's fingerprints all over this? He hasn't been there long but won them over to his thinking?

Bank of England Governor Mervyn King was elected first vice chair of the new European Systemic Risk Board (ESRB) that came into force on Thursday in a move that may allay UK concerns of being overruled by Europe (news) .

The anticipated news that King, who heads the central bank in the EU's biggest financial centre, will have a key role at the ESRB will help meet criticisms that Britain was being sidelined by the bloc's new supervisory framework.

The ESRB will monitor potential credit and asset bubbles across the 27-country bloc and recommend action before markets or economies become destabilised, plugging a macro-supervisory gap highlighted by the financial crisis.

The board, which will have no binding powers, is hosted by the European Central Bank in Frankfurt and will be chaired by ECB President Jean-Claude Trichet, as expected.

"The work of the ESRB will be important in ensuring the resilience of the European financial system and meeting the challenges that lie ahead," King said in a statement.

http://uk.finance.yahoo.com/news/Bank-King-vice-chair-new-EU-reuters_molt-2431599609.html?x=0

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http://www.bloomberg.com/news/2011-03-12/explosion-destroys-walls-of-japan-reactor-building-nhk-reports.html

Related News:Bonds .Europe Boosts Bailout Fund With ‘Firewall’ Bond Purchases, Eases Greek Aid
European leaders
widened the scope of the euro’s rescue fund, authorized it to buy government bonds
and eased the terms of Greek bailout loans as they unexpectedly pushed through fresh measures to end the bloc’s debt crisis.
Under a pact struck at 1:30 a.m. in Brussels after eight hours of talks, the bailout facility will now be able to spend its full 440 billion-euro capacity ($611 billion) and to buy bonds directly from governments. In a blow to European Central Bank President Jean-Claude Trichet, it won’t be allowed to purchase debt in the open market or to finance debt buybacks..../
“This is an important message on the political pledge of the euro members to fight for the euro’s stability,” German Chancellor Angela Merkel told reporters. “Everyone had to make a contribution
. I hope that this will also be a good message to the world in terms of the euro as a major currency.”

Looks like QE or pumping more money into the system without having worked for it. Angies' "hope" for the Euro will buy a little more time for the Euro which should get a boost based on the positive talk this weekend.

I guess I should go and do some research of my own, but I still can't tell from that whether or not it is QE. For example, if Germany has pumped some money into the fund, resumably by lending the money to the fund, with other govts also making token contributions, this isn't QE; it's just going to add debt to each of the contributing govts' balance sheets.Buying govt bonds isn't of itself QE.

If the fund is simply money created by the ECB then, yeah, it would appear to be some form of QE (caveat - I am a purely amateur economist).

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Merv's fingerprints all over this? He hasn't been there long but won them over to his thinking?

Its good to know that a man who missed all the UK bubbles is now helping to detect European ones.

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http://uk.finance.yahoo.com/news/ECB-says-bond-buying-program-reuters_molt-2607050441.html?x=0

ECB says bond buying program temporary - report
16:36, Saturday 12 March 2011
FRANKFURT (Reuters) - European Central Bank president Jean-Claude Trichet told German weekly magazine Der Spiegel that the bank's program of buying government bonds was temporary.
"We will not do this forever. This measure is, like all our extraordinary measures, temporary," he told Der Spiegel.

Not much lasts for an eternity. Depends what they mean by not lasting forever. Years, decades, a generation........?

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Its good to know that a man who missed all the UK bubbles is now helping to detect European ones.

The ESRB is an independent EU body responsible for the macro-prudential oversight of the financial system within the Union

The new 'super-watchdog' is designed to take an overview of Europe's financial system and highlight emerging problems for relevant authorities to act on. It has no formal enforcement powers.

ESRB warnings will be colour-coded to reflect the urgency of the threat. They will draw on information such as stress tests carried out by members such as the European Banking Authority and analysis of information already available. Other analysts said the ESRB is not doomed to irrelevancy.

http://www.asymptotix.eu/content/esrb-european-systemic-risk-board-holds-inaugural-meeting

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The ESRB is an independent EU body responsible for the macro-prudential oversight of the financial system within the Union

The new 'super-watchdog' is designed to take an overview of Europe's financial system and highlight emerging problems for relevant authorities to act on. It has no formal enforcement powers.

ESRB warnings will be colour-coded to reflect the urgency of the threat. They will draw on information such as stress tests carried out by members such as the European Banking Authority and analysis of information already available. Other analysts said the ESRB is not doomed to irrelevancy.

http://www.asymptotix.eu/content/esrb-european-systemic-risk-board-holds-inaugural-meeting

What do they use - crayons or red ink?

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http://uk.reuters.com/article/2011/03/12/uk-ecb-bonds-idUKTRE72B2JP20110312

European Central Bank president Jean-Claude Trichet told German weekly magazine Der Spiegel that the bank's program of buying government bonds was temporary.

"We will not do this forever. This measure is, like all our extraordinary measures, temporary," he told Der Spiegel.

Figures released earlier this week showed the ECB bought no government bonds in the previous week.

The ECB began buying government bonds on the secondary market last May to counter the sovereign debt crisis which began in Greece, spread to Ireland and is now threatening Portugal.

Excellent it's only temporary....

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Posted in here 4 hours ago by RB

http://www.housepricecrash.co.uk/forum/index.php?showtopic=160978

We are definitely going to have to try you over an extra couple of furlongs - you just cannot get going fast enough now over 5f

Clearly I'm slacking :lol::lol: Been too busy elsewhere and to be fair it had a different thread title.

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http://uk.finance.yahoo.com/news/ECB-says-bond-buying-program-reuters_molt-2607050441.html?x=0

ECB says bond buying program temporary - report
...
"We will not do this forever. ..."
Yeah, right, like the BoJ. Still buying after 13 years having never sold a single JGB.
Does anyone know of an instance where a central bank kicked the habit?

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Bank of England Governor Mervyn King was elected first vice chair of the new European Systemic Risk Board (ESRB) that came into force on Thursday ...

The ESRB will monitor potential credit and asset bubbles across the 27-country bloc

http://uk.finance.ya...599609.html?x=0

Look at it this way: he f@cked up when he only had one country to watch, but this way, he has 27 times as many chances.

0.jpg

Merv : "Trees ..... and a guy .... and grass? Oooh, I nearly missed the sky!"

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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