The bandwagon effect taking place in Greece looks set to deliver leftist Party Syriza a victory by 6-7% of the popular vote….but the ECB says the country is an ECB leper. The Slog tries to put things into a wider geopolitical context.
Well, now we know: Greece will be shut out of QE “for at least six months” because of “limits on how much debt the central bank buys from a single issuer”. It must be smashing being a central banker: everything you do is secret and/or the opposite of what the public are told – so you can lie your head off with glorious abandon. I spoke to a contact in Spain today, who had this to say:
“Spanish banks break those limits at least once a week, but the ECB moves the money around the whirlygig so that it never hits the tripwire. If he’d let the Greeks take part [in the easing programme] frankly nobody would’ve noticed it. It’s just more bullshit”. Continue reading