The markets took a sharp turn south today following the comments of the ECB chief, Mr Draghi that even if the EU summit agrees tight fiscal measures the bank will help out ailing countries as it did not have the legal powers. There are those who argue that the bank could do this within existing powers. Looks as though the bank is cherry-picking legal provisions, as has Mrs Merkel.
http://www.telegraph.co.uk/finance/financialcrisis/8943661/ECB-chief-Draghi-quashes-hopes-on-bond-buying.html
See also: http://www.bbc.co.uk/news/business-16082755
See also: http://www.telegraph.co.uk/finance/financialcrisis/8944809/Market-rout-as-ECB-dashes-bond-hopes.html
Interesting view that states may be helped by the ECB via the back door, namely by supporting banks.
Unless the ECB is given the powers of a central bank, it really will not matter what else the politicians decide in Brussels, the markets will decide for them - and quickly.
KENT COMMUNITY ACTIVIST: acerbic, carping, caustic, curmudgeonly,critical, cynical, grumpy, moaning, sardonic and plain speaking.
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