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Amgrace Posts: 2067 Incept: 2008-02-15 New Castle, PA 16101	http://globaleconomicanalysis.blogspot.c.... Excerpt from Mish: ECB Considers Interest Rate Caps; Can Such a Scheme Possibly Work? Economic Times reports European Central Bank mulls caps on borrowing costs The European Central Bank is considering buying the bonds of crisis-wracked eurozone countries to ensure borrowing costs do not rise beyond a pre-determined level, German newsweekly Der Spiegel said Sunday. The bank will define an upper limit for borrowing costs in countries such as Spain and Italy and intervene in the markets to ensure it is not breached, Spiegel said, without citing its sources. At the end of trade on Friday, Spain was paying 6.39 per cent to borrow for 10 years and Italy 5.76 per cent. In contrast, Germany was paying 1.49 per cent, as investors trust Europe's top economy to repay them. The so-called spread, or difference, between benchmark German bonds and the debt-wracked countries would be decisive for the proposed rate cap, Spiegel said. ECB President Mario Draghi announced earlier in August that his institution "may" buy bonds of struggling countries if they first apply for EU bailout funds and accept tough conditions in return. He said the details would be worked out before the next meeting of the ECB, scheduled for September 6. Spiegel said that ECB governors would decide then whether to implement the proposed borrowing cost cap. Read more at http://globaleconomicanalysis.blogspot.c.... ---------- American politics as a system has ceased to function, because the system has gone from representing people to representing money. And that is something that can only go well as long as the people have at least some of that money. - Automatic Earth 3/17/2010 2012-08-19 13:58:49 Permalink
Lemonaid Posts: 9879 Incept: 2008-01-20 Metro Detroit Online	Price controls? Really? ---------- "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." Ludwig von Mises 2012-08-19 17:40:34 Permalink
Mo Posts: 12158 Incept: 2007-06-26 Pa.	cool. ---------- Welcome to Pottersville 2012-08-19 17:45:59 Permalink
Wearedoomed Posts: 3585 Incept: 2009-01-14 slightly red state	Three cheers for the command economy! ---------- And you, my father, there on the sad height, Curse, bless me now with your fierce tears, I pray. Do not go gentle into that good night. Rage, rage against the dying of the light. 2012-08-19 17:50:09 From PDA Permalink
Kamath Posts: 1539 Incept: 2009-04-04 Sweden	This will fail spectacularly. ---------- "Yep - and that ***er didn't want to light either. I had to soak it in gasoline for a full day before that rat bastard thing would combust." - Karl Denninger ""We could not be more ill served if we had some South American tribal witch doctor shaking monkey bones at us. " - Infidel 2012-08-19 18:15:20 Permalink*
Sean Posts: 1766 Incept: 2009-04-21	Quote: This will fail spectacularly. Yep x1000000! ---------- * I think Ann Barnhardt is more and more right. God help us! * Progressives / Marxists / Communists are many things, STUPID and IMPATIENT are not two of them. * A hot civil war is coming. * And people wonder why I prep! 2012-08-19 19:04:14 Permalink
Eaglewwit Posts: 6054 Incept: 2007-11-30 SoCal Banned	But first it will allow the markets to go up even more. Just think if we can get back to above ATHs, then another crash isn't that bad. 2012-08-19 19:39:46 Permalink
Lemonaid Posts: 9879 Incept: 2008-01-20 Metro Detroit Online	Gotta bluff the Retail folks into pushing all their chips in the pot so they can flash crash it and sweep in, take them all, with the clearing servers conveniently "locked-up". Yeah, seen it before. ---------- "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." Ludwig von Mises 2012-08-19 19:49:08 Permalink
Swingtrader Posts: 9108 Incept: 2007-08-12 United Oligarchic Goldman Sachs States of America	I wondered when we were going to reach that point. I think it likely will spread to the rest of the world, as needed. Gonna be a waypoint on the road to hell. ---------- Swing said "Well, it is collapsing as we watch.This is what it looks like." Australian federal judge Jayne Jagot, doing what US judges need to do! 2012-08-19 23:00:57 Permalink
Bjonsson Posts: 349 Incept: 2010-03-10 California	This is one of those policies that, once started, will never be able to be stopped. Once you start manipulating rates, how could they ever attempt to unwind them without rates absolutely EXPLODING. 2012-08-20 15:14:57 Permalink