Draghi May Do Something at Some Point

More

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.

Jump to comments
Presented by
Get Today's Top Stories in Your Inbox (preview)

An Eerie Tour of Chernobyl's Wasteland

"Do not touch the water. There is nothing more irradiated than the water itself."


Join the Discussion

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

Video

Is Technology Making Us Better Storytellers?

The minds behind House of Cards and The Moth weigh in.

Video

A Short Film That Skewers Hollywood

A studio executive concocts an animated blockbuster. Who cares about the story?

Video

In Online Dating, Everyone's a Little Bit Racist

The co-founder of OKCupid shares findings from his analysis of millions of users' data.

Video

What Is a Sandwich?

We're overthinking sandwiches, so you don't have to.

Video

Let's Talk About Not Smoking

Why does smoking maintain its allure? James Hamblin seeks the wisdom of a cool person.

Writers

Up
Down

More in Business

Just In