Draghi May Do Something at Some Point

Another euro clarification. The ECB may be willing to do whatever it takes, at some future point, once plans have been drawn up, and provided the countries whose bonds it may buy have received a stamp of approval from the EFSF/ESM.

The only clear thing in Mario Draghi's press conference today wasn't about what the ECB would do, it was about it wouldn't do. It wouldn't go along with giving the ESM a banking license, which would let the ECB finance it and hence support a greatly expanded scale of operation. Of course, that raises another question. If not from the ECB, where will the ESM get the resources it needs to intervene on the necessary scale? Assuming, of course, it ever decides to intervene on the necessary scale.

In all, I'm not surprised the markets weren't impressed. I wrote a column earlier in the week arguing that Draghi should step up--and that Germany should let it. It looks as though he'd like to, but we're certainly not there yet, and German opposition appears to be the reason.

Presented by

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

What LBJ Really Said About Selma

"It's going to go from bad to worse."

Video

Does This Child Need Marijuana?

Inside a family's fight to use marijuana oils to treat epilepsy

Video

A Miniature 1950s Utopia

A reclusive artist built this idealized suburb to grapple with his painful childhood memories.

Video

Why Principals Matter

Nadia Lopez didn't think anybody cared about her school. Then the Internet heard her story.

More in Business

Just In