Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
but they need to borrow to buy back the discounted old bond...

...unless France and Germany do the buying themselves, and hold the paper to maturity, making a nice profit in the process...

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Thu Feb 11th, 2010 at 05:07:55 PM EST
[ Parent ]
It's a no-risk operation. They should have no problem borrowing the requisite money directly from the ECB, no?

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Feb 11th, 2010 at 05:08:55 PM EST
[ Parent ]
Well, they can always raise taxes or issue money.

After all, they're Euro-denominated bonds.

En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma

by Migeru (migeru at eurotrib dot com) on Thu Feb 11th, 2010 at 05:09:10 PM EST
[ Parent ]
Anything that is even a fraction as glorious as the actions of the Hong Kong currency board will find me applauding.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Fri Feb 12th, 2010 at 01:52:18 PM EST
[ Parent ]


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