In Mexico say that do a lot of excitement when they rise it takes met expectations. And there is no doubt that Mario Draghi and the European Central Bank (ECB) have made a lot of excitement with the launch of its unconventional monetary programs.
The US Federal Reserve (Fed) with all the pragmatism that are capable in that bank gave the example of how unorthodox measures such as buying bonds can help reverse an economic downturn.
Today the Fed is in the process of applying the antidotes to methods of monetary shock. But I still believe in Europe, at least until today because tomorrow must come the announcement of a bond purchase plan.
To whom, for how long, in what amounts? These are questions that fuel the speculation but does not yet have a concrete answer. The consensus is that Mario Draghi Thursday has to announce an extraordinary plan to shore up the economy in the euro zone has entered into deflationary territory.
The ECB is a supranational body that will decide above the central banks of each of the 19 member countries of the European single currency. This implies that a bond purchase plan debt of monetary involve members take the risk of 19 independent and divergent governments.
Of course I would gladly take the roles of debt of Germany with its perfect credit rating but as the Greek and Portuguese bonds with ratings from soils also have to be part of a package of central bank liquidity.
Of course, the support will be for the whole monetary area, but that means the portfolio of the ECB can only be seen from morning to the extent that the 19 partners take their share of the risk.
Obviously this condition for support of a European Quantitative Easing has all the German design . It is no secret that Berlin is against a program that assumes a multinational risk bond purchase plan, because that would imply that all saw him face German guarantee to each bond.
The point is that each nation assumes the risk and keeps its commitments to change. Spain is the most notable of the group rehabilitated. After its deficit excesses today has a correction economy and expectations grow 2 percent. But Italy or France, for example, are the softest rebels fall into a general bond purchase plan.
Obviously, the market would see tomorrow an ambitious program, with lots of money and few questions to flood EUR the world. Something to reactivate the economy of this region.
So it is likely that conditions will put the ECB to buy bonds are not going to like the whole market, perhaps you could make with some good amount available for that purpose.
But at the end of the day the idea is to revive the economy as unorthodox as the euro zone and a packet full of locks and brackets block can be a useful way to do and not lose billions of euros in the process.
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