Wednesday 9 November 2011

Italy debt crisis: what the experts said

Telegraph
"Jeremy Cook, Chief Economist at foreign exchange company, World First

“The markets continue to lurch from one problem to the next and we have now kicked the can as far down the road as is possible. Unfortunately there is very little more that can be done to stop this crisis. The only possible mechanism for the eurozone to haul itself out of this mess is to let the ECB print euros and print them like their life depends on it, because - and I do not mean to sound flippant - the euro’s life does depend on it.

"The ECB have tried to stymie the increase in Italian bond yields by buying Italian debt [bond prices move inversely to yields], but they have not done so in any meaningful manner. If Mario Draghi wants to live up to his 'Super Mario' moniker then he really needs to throw the ‘kitchen sink’ at the problem, not just the plug.

"Without a bold move from the ECB, the euro, in its current form, is in grave danger of imploding.”

No comments: