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... since they cannot buy directly from the Treasury, is buying Treasuries on the private market, putting them on their books as an asset, so writing up the liabilities of the extra reserve account entries credited to the sellers of the Treasuries.

But on what basis? Implementing common ECB monetary policy?

And if the ECB says, "those are not sound assets you have on your books, we are not accept payments from you until you clean up your books and have sound assets backing your liabilities" ... if the ECB can in fact make it stick, that's the end of that strategy.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sat Dec 4th, 2010 at 08:44:26 PM EST
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