European Central Bank in nuanced denial of yield cap plans

EU Observer ^ | 08/21/2012 @ 09:12 | Honor Mahony

[Olog-hai]

The European Central Bank has failed to outright deny that a bold plan for the bank to bring eurozone government borrowing costs is in the offing.

The Frankfurt-based bank said it was “absolutely misleading to report on decisions which have not yet been taken and also on individual views, which have not yet been discussed by the ECB’s governing council."

But the statement implies that the idea to put caps on bond yields—reported in Germany's Der Spiegel—may yet be debated.

According to the report, the bank is considering setting up country-by-country thresholds for sovereign bond yields, after which it would intervene by buying up the stricken states's bonds. The benchmark would be German bonds, seen as the safest in the eurozone. …

[Olog-hai]

This is the bank more than any other bank that caused the 2008 fiscal crisis. They're accountable to absolutely nobody, and have way too much influence over both money and politics.

[Moltke]

This Goldman Sachs is the bank more than any other bank that caused the 2008 fiscal crisis. They're accountable to absolutely nobody, and have way too much influence over both money and politics.

Fixed.

[Olog-hai]

No. It is most definitely the European Central Bank. Goldman Sachs as EU bogeyman is not going to cut it. Only the ECB had control of the interest rates of seventeen nations, setting them to the benefit of only one. When Goldman Sachs falls, the ECB will still be standing.

[Moltke]

GS was instrumental in aiding Greece to join the euro, knowing full well it was a big scam (heck, they *orchestrated* that scam!) -and yes, lots of faceless eurocrats colluded, damn the consequences- but they had their finger on the first domino falling. Past or present key GS personnel played a major part in the sub-prime fiasco that started this financial sh!t storm in the first place. The list just goes on and on. GS is always the common denominator. Jon Corzine, ex-GS CEO, MF Global head honcho, thief. Etc.