The ECB liquidity monster

The kraken consumes all…
ftalphaville.ft.com/blog/2009/09 … y-monster/

We get a mention as being in basket case 2. I believe we are also in basket case 1, although gaming is not the, eh, game… more like life support for the government. I think NAMA is a clear case of basket case 3…

Its an interesting thesis proposed by the authors. However my gut judgment is that although there may be problems with individual countries (us) the authors are making too much of the disconnect between the ECB and national authorities. I think that the ECB has the tools and competencies at its disposal to roll back the liquidity. I suspect that ECB will threaten and cajole national authorities into getting their house in order (where they are capable of doing so and changes are required). That will just leave the real basket cases (us) - will they just throw us to the wolves or will they dream up a new scheme especially for us?

And part 2:
ftalphaville.ft.com/blog/2009/09 … and-spain/

Rarely wrote:

So NAMA is nothing to do with the ECB then?FFS who is underwriting it?WAke up will ya?,the ECB is going to bail out every last bust bank and government across the Eu,its just they aren’t as open about it as the Fed and the Bank of England.

Further update:
ftalphaville.ft.com/blog/2009/09 … e-for-now/

aib and boi are in the covered bond issuing business nowadays…like the ECB told them eh ?