Armstrong Economics Blog/Central Banks
Re-Posted Sep 9, 2020 by Martin Armstrong
QUESTION: Buongiorno signor martin anche se mi piacerebbe chiamarla professore, è la Bce sta comprando azioni delle banche europee grz
ANSWER: The ECB is looking into buying bank stocks because nobody else will. It is the only way to pretend they are meeting their capitalization. They are floating the idea of buying stocks, but they are not expressly saying bank stocks. It is another attempt to desperately try to hold on to this fiction. It will not succeed. They are buying stocks rather than doing bailouts. It amounts to the same thing, but they can claim it is not a bailout politically.