ECB will pick up the tab in the end
The European sovereign debt crisis will be resolved when the politicians finally decide who to bear most of the losses. ECB will be asked to step in and buy the sovereign bonds to restore confidence while allowing countries in massive debt to mend their finances.
However, this will not happen soon as ECB will not be forced to act unless the stock market tumbles badly again. That’s the story for 2012.
Entry filed under: Watch your step.