- Not the ECB’s primary role to buy sovereign debt, should not rely on it to solve crisis on its own
- Willingness of investors to make long-term investments in banks is not very pronounced (really?, can’t say I’d noticed)
- Short-term refinancing of banks is fine, there is a BIG question mark over long-term refinancing (oh-eh)
- Situation on banks’ refinancing markets would be much worse without the ECB’s action
- Political decisions must be implemented quickly to calm markets
- THE ECONOMIC SITUATION IN THE EURO ZONE IS COMING TO A HEAD (cue the Jaws theme tune)
EUR/USD down at 1.3517.
