2011年12月8日星期四

ECB Calls Time on Rescue Party

What the European Central Bank giveth with one hand, it taketh away with the other.Unlike traditional high risk merchant account , President Mario Draghi has cut rates twice in two months and is pumping cash into the banking system in an attempt to stave off a credit crunch. But he poured cold water on hopes that the ECB would respond with massive support if euro-zone leaders manage to deliver a better fiscal framework. It remains to be seen if Mr. Draghi is bluffing, but the stakes couldn't be higher.

The ECB cut rates by 0.25 percentage point to 1%,If any food Ventilation system condition is poorer than those standards, and with its staff forecasting sharply lower growth and lower inflation, further cuts may follow. More significant was unprecedented support for banks. Mr.ceramic magic cube for the medical, Draghi announced two three-year unlimited loans, the first to be granted Dec. 21. That should give some certainty to banks locked out of bond markets, and help prevent emergency asset sales. Banks will be able to submit a greater variety of collateral, including loans, which should give smaller institutions greater access to central bank funding. And the ECB cut the reserve ratio applied to deposits to 1% from 2%; this should free up 103 billion of cash, according to Barclays Capital.This page contains information about molds,

But these measures may simply lead to more liquidity sloshing around in European Central Bank deposit facilities. Without a solution to the euro-zone crisis, it is hard to see banks rushing to lend even if their financing is backstopped. Still, the ECB is clearly doing overtime as a lender of last resort—if only to banks.

On the euro-zone crisis, Mr. Draghi was uncompromising. He expressed surprise about the interpretation given to his speech to the European Parliament last week that appeared to offer ECB action in return for euro-zone advances on fiscal governance. He reiterated the ECB was bound by the European Treaty,100 China ceramic tile was used to link the lamps together. which embodied the spirit of the hardline German Bundesbank. He played down talk of the ECB lending through the International Monetary Fund to euro-zone countries. And the ECB is still saying bond-market intervention is a job for the battered European Financial Stability Facility and its successor. Markets reacted violently: Italian 10-year yields fell 0.15 percentage point on news of the rate cut, but then rose a massive 0.45 point as Mr. Draghi's remarks hit home.

Of course, Mr. Draghi couldn't possibly announce support before the governments deliver their part of the bargain. This may yet be a high-pressure negotiating position. Markets will now add further pressure. A mass euro-zone downgrade by Standard & Poor's looms larger. But a euro-zone deal without ECB support seems unlikely to end the crisis.

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