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Obviously buying covered bonds but not sovereign bonds in the secondary market isn't a policy mix deliberately discriminating against some members and in favor of others.

You missed the big program starting right now?

Somehow your view of the ECB is stuck in 2009.

"Clearly the ECB is a purely supranational institution,"

Yes, indeed. Weidmann hasn't won a vote since 2011 or so.

by IM on Sun Mar 15th, 2015 at 06:44:07 PM EST
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No, I haven't missed any big program.

The ECB bought on the order of 1 % of all outstanding covered bonds over the course of less than two years. The piddling little Johnny-come-lately Securities Market Program amounted to less than a third of a percent of outstanding Treasury issues at its best, and was rolled out over two and a half years.

Size really does matter, and the ECB has been consistently undersizing its sovereign bond interventions.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Sun Mar 15th, 2015 at 07:18:51 PM EST
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