Friday, December 17, 2010

Half the story...

Our Source? The New York Times:
Casting aside their differences over how to contain the continuing debt crisis, Europe’s leaders on Thursday pledged to do “whatever is required” to defend their embattled currency.

They also agreed to create a permanent support fund for the euro after 2013 — something they hope will be a first step to calming the markets.

But even as they moved to restore investor confidence, the seriousness of the euro’s plight was underlined by events in beleaguered countries. Spain paid a sharply higher interest rate on an auction of long-term bonds than in its previous sale, reflecting investor fears about the country’s indebted economy.
Re: Spain, maybe. On the other hand, maybe the ECB is just taking a break from the buying spree it has been on the last couple of weeks. When you hear about the PIIGS having "successful" debt auctions, ask yourself, "Is that because free-ish market actors are subscribing -or- is it a contrived 'success' because the ECB has stepped in with the cheque book?"