2:21 PM Sources say the ECB is considering purchases of Italian and Spanish sovereign paper on a massive scale. Such a move would be a significant change in policy, turning the ECB into a Fed-like lender of last resort, and taking lead responsibility for fighting the crisis away from the EU governments.
S&P Downgrade was 90% priced in anyway...
check oil chart....check the abc retrace....first wave a was fine...but wave C was very weak, where it was supposed to recover into wave 1....thats what i dont wanna see happen to spx....
"S&P Downgrade was 90% priced in anyway.."
more like 100%. completely. why? Nobody cares. Bond traders are WAY smarter than anyone at S&P and only a jag off would think there call is ahead of the market. Bond traders have and have had a better handle on the quality of US debt than S&P, and none of them really cares what S&P has to say anyway because they are ahead of them and S&P has no credibility.
Notice Fitch & Moody's HAVE NOT downgraded.
I read Germans were against it. And they contibute the most to ECB funding.
ECB chairman can never be his own man as the position does not the allow the autonomy that the US Fed Reserve chair post does. ECB chair has to be a politician of necessity, not just by choice => weakness and inablitiy to act are chartered into the position. IOW ECB charter pretty much requires that a spineless wimp hold the ECB chair. Germany calls the shots.