The international distress call is going out from Europe as the overall eurozone unemployment rate reached 12.1%. Germany had a low rate of 5.4% while Spain was more than 27%. So how is the ECB to do deal with the huge discrepancy between the economic performance of its 17 members? If the austerians are being relegated to economic purgatory then the pressure on the ECB to act will be diminished. Cutting rates for the sake of a show of action will be a detraction from the bigger political issue. Why irritate the Bundesbank and Chancellor Merkel by moving the ECB lending rate by a measly 25 basis points?
Posts Tagged ‘two-year notes’
Notes From Underground: May Day! May Day! May Day!
April 30, 2013Notes From Underground: EUROPEAN BANK STRESS TESTS = AYSO Soccer
July 17, 2011For all those who have ever been involved with American Youth Soccer Organization (AYSO), it is easy to see the similarity between the EBA‘s “stress tests” and a youth soccer game. Like AYSO, the Euro STRESS TESTS meant that everyone who plays gets a trophy for showing up. The philosophy is that every participant is a WINNER. Also, there is no keeping score for that would be bad sportsmanship. So, the EURO STRESS TESTS are treated in the same light.