Was it the ECB, in the bond room, with the dagger?

November 14, 2011

ok. ok, Mr Draghi I give up

It turns out that it may have been the European Central Bank that finally finished Silvio Berlusconi off.
The central bank revealed on Monday that it severely reined in its government bond purchases last week, just at the crucial moment as markets were pushing Italy’s borrowing costs beyond the 6 percent pain threshold that finally forced Silvio to jump.
The ECB’s bond purchases have long been its torture method of choice. It turns them off when it wants more from its victims and opens taps when it gets what it wants.
This time it looks like it was Berlusconi’s head they were after. Maybe its not surprising his final outburst was a parting shot at the ECB calling for it to show some mercy and act as the lend of last resort for the euro zone.

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