129779483458750000_1Review: MarketWatch columnist Howard j Markman (Jon Markman) thought that the ECB's so-called solution there is no real solution to the problem, essentially at the expense of the global economy, coupled with other local variables will cause greater crisis later in the year. Howard j Markman reviewsText: in the past four months, the European Central Bank to resolve the sovereign-debt crisis besetting the local high profile, and won the applause and cheers of peoples, it seems that evil is on the continent had been completely expelled. However, if in the next few months, more and more investors begin to these monetary policy makers in the evaluation of the policy,Began to think their approach is dangerous and wrong, we are not surprised. Why do it? Each is considered to be appropriate to the present situation of injury issues, the European Central Bank has already used weapons of mass financial, which was nicknamed by its supporters "Bazzu card". However, but few have criticized the idea, consider thisBack of weapons will have a huge force, and for those who question whether they really apply. This difference is not taken lightly. If policy makers are just first opened fire after shouting out, them right from wrong end only in unique, vital court decisions for the global financial, the jury is the bond buyers in the private sector. FinalJudgement is likely to be very cruel. Currently, seems to be the European policy makers took the upper hand, as the debt crisis seems to have been brought under control, while the stock market was also able to get a break opportunity. However, those bond investors from the private sector in Greece resolve the credit crisis which acted as a victim role, in the so-called "collective action", They were forced to accept the disposal of confiscated, it was clear that if given the chance, they would show their anger and revenge. Next time you face them, policy makers whether weapons of moral or financial weapon I'm afraid there will not be so full now. If you know how to look, you can easily find the next battlefield.Central bankers in December last year and February this year launched the so-called long-term refinancing operation (LTRO), they operate in to those who rely on Government licenses to commercial banks at an extremely low cost of providing arms, let them respond to before the war. These banks in accordance with the instructions, using long-term refinancing operation – a total of net amountAbout 600 billion euros--to purchase the existing problem of countries such as Italy, and Spain and France of sovereign debt. They are guidance in their respective domestic loans to support economic growth. They take orders to buy sovereign debt, driving their prices up and yields also fell, made the country's borrowing costs. Problem is,These banks don't seem to follow the directions for the second step of the action, the rest of the money lent to stimulate the economy. This means that businesses and consumers on the European continent again in a slow asphyxia, just like last year, and in 2008, did not have enough credit to support corporate expansion and personal consumption. Interesting about exactly what is here. PrivateSector real money fund managers are not fully out of pain and injury suffered by themselves in Athens, is not ready to listen to fill such gaps. Now that the monetary authorities in Greece on the issue of practices contrary to some of the most basic principles of contract law, what it gave them? In other words, Europe now are actually facing, like last yearThe devil, but they can be used to combat funds are greatly reduced. Policy makers have difficult to have sought help from the private sector. This is a huge problem, because Portugal is the storm of financial crisis and Spain facing youth unemployment 52%, a series of strikes to break out of an awkward situation. The latest eurozone dataShows, although in January, because of the longer-term refinancing operations, driven by rapid growth in M3 money supply from 1.5% to 2.5%, but in February, monetary growth has slowed dramatically, and granting loans to businesses and households are still very weak, and is likely to have been in freefall. Italy's ten-year government bond yields for nine days in mid-March onRose, Spain economy gradually faded at the same time, yields on ten-year bonds again back to the 5%. Analysts are nervous mess that may occur in the next quarter, rate of economic contraction was likely to achieve astonishing levels. In southern Europe, the amount of currency in circulation is heading for collapse of the economic system, the report shows nearly six months, GreeceLost 13%, Portugal 9%, Italy 8%. At the same time, throughout the region slips toward recession, even Germany last week also announced that the decline in factory orders figures January 2.7%, 5% exports. Essentially speaking, central bankers are in drug use funds on the Mainland, they are only temporarily helped keep some countries face, but noReally solve any problem. With truth
tera power leveling, the final conclusions are likely to be: policy makers say they are fighting to solve and avoid sovereign debt crisis, but in fact, they are at the wrong time on the wrong enemy opened fire, and the use of prohibited weapons. Liquid filling, dragging the stock market rose in the first quarter,Also temporarily diverted investors ' attention to these issues, but the problem has not disappeared-as long as picked through tinted glasses
tera gold, we will soon find the world yesterday, and there is no different. In China, Premier Wen Jiabao last week is expected to increase economic growth fell to 7.5%, in China's case, it is has been called Turtle speed. The first two months of this year, home sales in China40% fell in the same period compared to last year, prices fell 22%. United Kingdom, the Daily Telegraph reported that the Japan brokerages Nomura pointed out that a 7.5% reduction in consumption of China in January compared to a year earlier, this means reduced industrial production activity. Nomura also claims that China has reached a "peak of steel". Switzerland Dong Tao, credit analysts believed that Chinese workersAlready towards the end of prosperity, which will inevitably have some distressing consequences on a global scale. "We believe that the golden age of infrastructure investment has been a thing of the past. "Dong Tao, a study published in the Telegraph which says," the golden age of the housing boom has been a thing of the past. Golden age of exports has become the past. Golden age of stimulusA thing of the past. "At the same time, in the middle of March, Brazil announced their 2011 annual economic growth rate of 2.7%, full lower than a year ago, the Government expected a half. The economic engine of South America also said, a 2.1% reduction in their industrial output in January, has not been seen since the 2008 crisis. Later, Brazil's Central Bank cut its benchmark interest rateHas lost four per 3%, this initiative greatly exceeded expectations, do not have to say that in order to stimulate growth. Want to know how serious is the current pressures, Shanghai Stock Exchange can provide clear answers for us, the Shanghai composite index is considered to be a leading indicator of global investors ' appetite for risk. Last year, the standard and poor's 500-stock index rose 5% At the same time, the index decreased by 22.5%, and 6% is from the last ten of the worst trading days. In short, in my opinion, the European Central Bank, bankers, they do, in fact, in order to face elections this year in Germany, and France and the United States political leaders of interest, and for the interests of consumers, families, and businessesStatement, such an approach is likely to have caused greater damage. Look, in the northern part of Europe, and the United States, a modest economic recovery is in progress
tera gold, and the policies of the past is not so strong compared to the wrist when casting and recovery today was suppressed by the great. I think, when future historians look back at thisStage, they may feel surprised, because so much liquidity, capital markets should not make a decent response. Maybe on this issue, we have not done enough to think about. Healthy economy does not need free money, government intervention is not required. Zero interest rates was unnecessary, as long as all individuals to pursue their ownInterest in reasonable regulations within the limits of their talents into full play, to realize their ideals, everything run seamlessly. But now, markets ignored all the risk, because people still follow the ancient doctrine, it is not against the Central Bank. Those investors willing to take risks, they choose could be Germany, and Switzerland and the United Kingdom and the NetherlandsHigh-end machinery manufacturers, such as ASM Lithography (ASML), ARM Holdings (ARMH) and Mettler Toledo (MTD), while conservative investors may focus on Belgium's Budweiser Anheuser-Busch InBev (BUD) and United Kingdom Diageo (DEO) and other food stocks.However, if in the summer or autumn, when the private bond managers pursue their own justice, policy makers have to declare that they would once again take defensive action, do not surprise. (Jin)
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