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I found this very interesting indeed, "sterilising bond purchases" nonsense notwithstanding:

BCE: après Trichet, à qui le tour ? - Coulisses de Bruxelles, UEBCE: after Trichet, whose turn is it? - Brussels behind the scenes
Si certains doutaient encore des capacités d'adaptation de Jean-Claude Trichet, la crise de la dette souveraine leur en a fourni une illustration supplémentaire. Dans la nuit du 9 au 10 mai, pour sauver une zone euro au bord de l'explosion, le président de la BCE a convaincu le conseil des gouverneurs de jeter par-dessus bord l'un de ses dogmes et a obtenu de pouvoir racheter sur le marché secondaire, celui de la revente, les obligations d'États de la zone euro attaqués par les marchés afin de casser la spéculation et stabiliser les cours. Aujourd'hui, la BCE a acquis environ 80 milliards d'euros de dette et a dû augmenter son capital pour équilibrer son bilan. De même, quelques semaines plus tôt, la BCE avait décidé de ne plus tenir compte des notes des agences de notation pour accepter, en garantie des prêts accordés aux banques commerciales des obligations des pays de la zone euro.If certain people still doubted Trichet's capacity for adaptation, the sovereign debt crisis has provided an additional illustration of it. In the night of May 9 to 10, to save a Eurozone on the brink of explosion, the president of the ECB has convinced the coincil of governors to throw overboard one of its dogmas and has obtained the power to purchase on the secondary market, that of asset resales, the obligations of Eurozone states attacked by the markets with the aim to break speculation and stabilize the rates. Today, the ECB has purchases about 80 billion euros of debt and has had to increase its capital to right its balance. Similarly, a few weeks eralier, the ECB had dedided not to take into account the credit rating agencies' scores to accept Eurozone state debt as guarantees for loans to commercial banks.


Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
by Migeru (migeru at eurotrib dot com) on Fri Jan 21st, 2011 at 06:54:07 AM EST

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