And markets pop accordingly to finish the week, solely on a serious promise of coming central bank intervention.
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As reported here on Wednesday the 25th, Spanish elder statesman Francisco Alvarez Cascos, former secretary-general of Spain’s ruling party, became the first major figure in Spain to openly suggest leaving the Euro, saying,
'This can’t go on for long, or we will have to think about leaving the euro before we are thrown out.'
Is it any coincidence that the European Central Bank "moved" on Thursday, as reported here?
'Mario Draghi, the ECB president, vowed to do "whatever it takes" to save the euro within limits of its mandate. "Believe me, it will be enough," he said in London.
'Picking codewords instantly understood by traders, Mr Draghi said the violent spike in bond yields in recent days was hampering "the functioning of the monetary policy transmission channels" - the exact expression used to justify each of the ECB's previous market interventions.'
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It was bad enough that ousted Italian leader Silvio Berlusconi had been openly suggesting in recent weeks that Italy should think seriously about whether it ought to continue in the Euro. To put that on the table in Europe's third largest economy was a serious sign that events were turning. Now joined by a similar suggestion in the fourth largest economy in Europe, the ECB had to act to stanch the wound.
The bond markets are forcing everyone to do what they do not want to do, but they will have their say, one way or another.
