propping up the bond market artificially. looks like the ECB is going to buy up the bond market in europe. Lucky the prices are dirt cheap right now for them
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SpyderCallOP : insight on this one? @iamiam
SpyderCallOP : are you a macro guy @Mike Huntand do you have any input on this? I'm still trying to figure out how to take this news.
Mike Hunt SpyderCallOP: Hmmmm. Greece and Italy drain on euro must be reaching crisis. When they announce this kinda shit, it means it’s already close to Sri Lanka collapse. This announcements say shit is worse than everyone thinks. Analogy would be carnival cruise issuing offering yesterday with stock at 10. Why wouldn’t they have done it in April when it was 20? So if we assume this ECB action means it’s worse than we expected, I think euro bond yields could rise and the euro fall even more? I’m not sure though
iamiam SpyderCallOP: watch it fall. this is all bad. Basically they have to raise rates because of inflation, many EU countries can not pay currently let alone higher rates (Greece, Italy, portugal, spain basically every Mediterranean lazy freeloading socialist european country) so they are to guarantee their loans, (probably by printing more money) it a house of cards paying for a second house of cards
SpyderCallOP iamiam: good inside. so this is to keep everything from collapsing. I knew the situation was bad. at least they're doing something. I wonder if the markets will take this positive or if it's just nothing Burger as you say
SpyderCallOP Mike Hunt: it's interesting notion on that carnival point. very interesting.
iamiam SpyderCallOP: I'm not sure what European markets will do, they are circling the drain and they have to know it
Mike Hunt iamiam: Irony is that Russia is the big winner. They helped force oil way high knowing that European countries that stupidly chose to reduce nuclear power and become dependent upon natural gas and oil would be vulnerable. Sanctions aren’t working because European countries aren’t going to endure hardship for the sake of Ukraine. Everyone looks down on Russia for not having a diversified economy but an Econ 101 you learn to focus on whatever you’re comparative advantage is And trade for all that other shit. In the last quarter Russia made 75% of their entire GDP in 2021. Brilliant
SpyderCallOP iamiam: right. I would assume that they would do something to prop up the markets. but I don't know if they have the means to or have the ammunition available.
iamiam Mike Hunt: YES I was just saying that to guys at work who didnt believe that russia is winning, they have a strong currency while the Euro collapses good one burden sanctions were brilliant
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