A Liquid Europe
The eurozone might just be stepping back from the brink – that is, if a new framework to resolve the ongoing sovereign-debt crisis includes liquidity support for solvent governments. If investors knew that a liquidity squeeze was no longer possible, they would refrain from speculative attacks on such governments' bonds.
https://prosyn.org/bYo45UR
BRUSSELS – Is the eurozone stepping back from the brink? This might just be possible, because the emerging outlines of a new framework to resolve the ongoing sovereign-debt crisis contain a key component that was missing so far. Indeed, that component’s absence was behind this summer’s spreading financial crisis, which moved beyond small, peripheral countries like Greece, Ireland, and Portugal to strike systemically important countries like Italy and Spain.