Jurgen Stark (who flew from the ECB nest with the departure of Jean Claude Trichet) and Jens Weidmann (he of the recent leaked letter disparaging recent ECB actions) can be characterized as monetary policy hawks neither of whom want to encourage economic bubbles due to easy liquidity as exemplified by the LTRO and the CBPP2. Mario Draghi meanwhile worries about the solvency of both the European Banking System and the Sovereigns. Shorthand this clash might be summarized along a continuum of fear: Depression vs. Hyperinflation or Recession vs. Zombie Banks?
Is Signore Monti correct in his assessment that the Euro crisis has transitioned from acute heart attack to chronic illness status (my analogy not his), or is John Authers correct in cautiously wondering if the bull bond market is in the process of transitioning to a bear bond market (barring an oil shock or significant geopolitical event) while the equity market transitions from bear to bull? If so interest rates are set to rise at some point...
Are the seeds of a future European war being sown by the choices made today? As is said, stay tuned and keep an eye out for both the gift and gifts
- Jurgen Stark's Resignation Is Setback for Merkel, By Peter Mller, Christoph Pauly and Christian Reiermann, 09/12/2011, Der Spiegel
- Bundesbank squares up to ECBs Draghi, By James Wilson in Frankfurt, March 1, 2012 7:19 pm, Financial Times, www.ft.com
- Monti Says Euro Area Sovereign Debt Crisis Is Almost Over, By Andy Sharp - Mar 27, 2012 8:33 PM MT, Bloomberg News
- Mario, put on your toga, Charlemagne, Mar 10th 2012 | from the print edition, The Economist
- Bonds and equities face a plate-shifting moment, By John Authers, March 24, 2012 3:27 am, Financial Times, www.ft.com
Yeasayer - 2080
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