Comments on: ECB bazooka may be short on credibility ammo Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 By: Gordon2352 Tue, 06 Dec 2011 15:32:27 +0000 Bondholders need to substantially scale back their expectations of a “miracle cure” for the eurozone crisis.

The reality is that:

(1) no eurozone nation or organization has the ability to “buy unlimited quantities of debt”, and

(2) the eurozone cannot become the United States of Europe for a multitude of political and economic reasons.

The sooner bondholders face these two realities, the sooner the crisis can be dealt with in a more constructive manner.

Right now, simply demanding an unlimited supply of (printed) money will not solve anything, and probably worsen the situation by creating more unsustainable debt levels, and may actually bring on the global financial crisis everyone fears.

Forcing nations to reduce their standard of living will only create political tensions on top of the already existing economic problems.

This is a massive financial crisis that was allowed to build up over time when things were going well, but now they aren’t, and it is unrealistic to expect a quick and easy solution.

The reality is this will take years to resolve, if it can be resolved at all.