"...German chancellor Angela Merkel however, in a speech to the Bundestag this morning, repeated her objection to the notion that the European Central Bank might follow the Bank of England and the Federal Reserve by embarking on quantitative easing.
"The European Central Bank has a different task from that of the US Fed or the Bank of England," Merkel said, adding that resolving the Eurozone crisis "is a process and this process will take years."
Merkel also again rejected the idea of jointly-issued 'Eurobonds'. European Union leaders are due to meet next Friday to discuss their next steps.
Elsewhere in Germany, bakery chain Wiener Feinbaecker is advertising a 5-Year bond at 7%, the Financial Times reports – noting that it is an "eloquent sign" that we could be entering another credit crunch.
"When a thriving business with profits growing at 30% a year resorts to this kind of financing, it is a pretty sure sign that banks are not fulfilling their traditional role," the FT report says.
Bank of England governor Mervyn King yesterday warned banks to prepare for a "systemic crisis".
"An erosion of confidence, lower asset prices and tighter credit conditions are further damaging the prospects for economic activity and will affect the ability of companies, households and governments to repay their debts," he said..."
at http://www.marketoracle.co.uk/Article31883.html
"The European Central Bank has a different task from that of the US Fed or the Bank of England," Merkel said, adding that resolving the Eurozone crisis "is a process and this process will take years."
Merkel also again rejected the idea of jointly-issued 'Eurobonds'. European Union leaders are due to meet next Friday to discuss their next steps.
Elsewhere in Germany, bakery chain Wiener Feinbaecker is advertising a 5-Year bond at 7%, the Financial Times reports – noting that it is an "eloquent sign" that we could be entering another credit crunch.
"When a thriving business with profits growing at 30% a year resorts to this kind of financing, it is a pretty sure sign that banks are not fulfilling their traditional role," the FT report says.
Bank of England governor Mervyn King yesterday warned banks to prepare for a "systemic crisis".
"An erosion of confidence, lower asset prices and tighter credit conditions are further damaging the prospects for economic activity and will affect the ability of companies, households and governments to repay their debts," he said..."
at http://www.marketoracle.co.uk/Article31883.html
