Was the ECB bounced into the bailout package?
The European Central Bank (ECB) has been forced to issue a flurry of statements this morning denying rumours that the weekend's European Union bailout package was purely and simply a response to the growing speculators lining up to attack European economies. The EUR750 billion bailout package took many people by surprise and indeed European markets are up between 4% and 5% in mid-afternoon trading. But was the ECB bounced into announcing the bailout package?
It would appear that the ECB has brought in a number of other heavyweights within the financial arena to support the Euro and ensure that the bailout package is fully understood and appreciated. Whether part of the rally today can be associated with short sellers closing out their positions after having their fingers burnt is open to debate but the speed at which the announcement was brought forward caught many speculators by surprise.
The truth is that whatever the reason for the lightning quick response to speculators in the debt market, the EUR750 billion bailout package should be more than enough to shore up European debt markets in the short term. Whether or not the speculators have been "beaten" remains to be seen because while the cracks in the European Union have been painted over in the short-term they could well re-emerge.
Share this..
Related stories
Is Gordon Brown doing it the American Way?
As Gordon Brown gets set to fly to the US for a meeting with Pres Obama there is a suggestion that the UK government will try to make as much spin as possible from the meeting in order to try and recover from a dramatic last few weeks. After a period of calm when Gordon Brown was seen as a "safe pair of hands" the recent opinion polls have shown a collapse in Labour support and the possibility tha...
Read MoreAlistair Darling plays down the impact of G20 agreement
In a move which is deliberately meant to downgrade the hopes of the UK population, Alistair Darling has tonight suggested that the $1.1 trillion G20 rescue package would not immediately impact upon the UK economy. In direct contrast to Gordon Brown's trumpets and fanfare earlier in the week it appears that Alistair Darling is bringing a more sober mood to the UK economy.
This is yet...
U.K. authorities planning high-speed rail network
The UK government has today issued plans for a £30 billion high-speed rail link in the UK with work set to begin in the autumn. This will provide the UK with the fastest rail network in Europe and create up to 10,000 jobs over the lifetime of the project. The program will be completed in various phases with the first being a link between London and Birmingham due to open by 2026 at a cost of up t...
Read MoreHas the Irish economy finally stabilised?
Economic indicators released by the Irish authorities today suggest that gross domestic product has finally turned after showing a 0.3% increase in the period between July and September 2009. However gross national product (which strips out the effect of overseas companies on the Irish economy) has fallen by 1.4% over the same period. The actual gap between gross domestic product and gross nationa...
Read MoreLabour and the Unite union
Despite Gordon Brown's very public outcry against the Unite union and the forthcoming British Airways strike activity, many journalists are now picking up on the very close relationship between Unite and the Labour government. Former Labour Party spin Doctor Charlie Whelan is at the head of the Unite union and many believe today's public relations stunt by Gordon Brown was exactly that, something...
Read More