I believe the coordinated action of Central Banks is meaningless in and of itself. This crisis will not end until the ECB prints money. They might print by lending to the IMF or EFSF and calling it something else, but print they must. Maybe this is a signal to the market that they will do what is necessary but the crisis is not over.


1 comment:

Brent Barber said...

I think the ECB will provide support in the current environment to get it through this mess, but they will not print in the traditional manner.  They want to maintain a degree of independence and protect the Euro as a hard currency as best they can, but they will do what is needed to keep things moving - I wonder if it was their idea today to reduce the rates?

I really don't see them as being so dogmatic that they would bring everything crashing down.