1. The situation is not as bad as the immediate post-Lehman environment, but "alarmed" by recent market stress.
2. Market concerns are real, but under-estimate the political resolve.
3. Per current treaty, ESM cannot lend directly to banks. If treaties change, not clear if desirable for ESM to own shares in banks.
4. The rate decision today was not unanimous but reflected consensus. A few wanted a cut.
5. Seemed to encourage Spain to borrow from the EFSF.
6. Had kind words to say about Ireland and its progress.
7. Seemed to reject Soros's recent claim that the EMU must be saved within three months.
8. Played down the likelihood of LTRO3, saying the second one has not been fully exploited. Suggests banks not facing liquidity shortage presently.
9. Implicit criticism of members for relying too much on tax increases for fiscal consolidation.
10. Tweaks to growth and inflation forecasts seemed to be disconnected from the recent string of data and market perceptions of dire economic situation.
Count Draghi: Ten Points
![Count Draghi: Ten Points]()
Reviewed by Marc Chandler
on
June 06, 2012
Rating:
