This blog has previously spoken in favour of Quantitative Easing in the Eurozone.
I am therefore glad to observe that since then, the ECB has embarked on a massive money printing program, lending this money to financial institutions at an ultra low 1% rate.
Though they are not calling this Quantitative Easing -that is exactly what it is, and the relative stability of the markets in the face of what seems like a strong possibility of a Greek default, is testament to the availability of liquidity in the system. This is entirely necessary for the next few years until the burden of debt has shaken down and it is clear who owns what.
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