tag:blogger.com,1999:blog-4900303239154048192.post2647720951081983562..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Does The Italian Bond Sale Mean The Eurocrisis Is Over?Unknownnoreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4900303239154048192.post-91440346882623539892011-12-29T22:39:57.274-05:002011-12-29T22:39:57.274-05:00Surely what the markets have figured out about Ita...Surely what the markets have figured out about Italy is that the ECB is going to keep buying a (barely) sufficient quantity of Italian bonds, so as to prevent a full-scale run?<br /><br />It's not exactly a secret that the ECB has been doing this for some time now, via the Securities Market Programme (~210 million Euros worth it, as of the 23rd of this month), as a way of 'ringfencing' the other 'periphery' nations against the Greek contagion. <br /><br />My guess is that the bond vigilantes simply decided they'd expended enough treasure assaulting this particular Helm's Deep (or, if you prefer, Rorke's Drift). <br /><br />That only means, of course, that actual insolvency is off the table. The real European crisis, the crisis of a drastic shortfall of aggregate demand, asymmetrically distributed across a vast area that is imprisoned in a single currency without a common fiscal authority to even things out, continues unabated.Amileojhttps://www.blogger.com/profile/00697235351749561279noreply@blogger.com