ECB Intervenes in Bond Market as Part of EU Debt Crisis Plan

[Joanne98]

May 10 (Bloomberg) -- The European Central Bank said it will intervene in government and private bond markets as part of an unprecedented effort to help stave off a sovereign debt crisis that threatens to destroy the euro.

“The Governing Council decided to conduct interventions in the euro area public and private debt securities markets to ensure depth and liquidity in those market segments which are dysfunctional,” the Frankfurt-based central bank said in a statement today. “The scope of the interventions will be determined by the Governing Council.”

The ECB said it will sterilize the purchases and announced it will hold additional longer term operations at three- and six-month maturities. The central bank also said that it will reactivate temporary liquidity swap lines with the Federal Reserve to resume U.S. dollar tenders at terms of 7 and 84 days.

The announcement came after European finance ministers crafted a loan package that may be worth 720 billion euros ($928 billion) in an effort to protect the single currency bloc.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0RoeU1FECGY&pos=3

[westerebus]

1. Hello.

Yes, this is the Federal reserve.

You're the ECB and want $60 billion? For the IMF, yes.

Plus another $100 billion in back up funding? Just in case, got it.

Plus a half billion dollars to cover currency swaps in fresh bills delivered by week's end? Fine.

Why, yes, we have your order right here.

No, Mr Bernake said it was OK.

Oh, Congress?

No, we don't need to do that. They know already.

What?

Hold please, I'll connect you.

Oh, wait Mr Geithner is here with Mr Dodd, will they do?

Right. You want the Manager, I understand. Certainly. No problem.

Goldman Sacks, Mr Blankfien's office how can we help you?

[amandabeech]

3. That does Bob Newhart proud!

What a *&(()!!!! mess.

[westerebus]

4. In my best Elvis voice: thank you, thank you very much. n/t

[amandabeech]

5. The King lives! Obama, leave a ticket for him at the next inauguration! n/t

[westerebus]

7. It's my understanding the King will not attend.

He wouldn't want to over shadow the moment by drawing attention to himself. He's humble like that.

[amandabeech]

8. Yes, sir. Or ma'am. n/t

[Po_d Mainiac]

6. Thank you sir. Can you spank me again please!

Hope the ECB enjoys the used TP they're gonna end up owning, as much as we enjoy "The Red Roof Inn"

At least Greece won't take up as many pages in Helo's book as Fannie and Freddie have. Wunner if the Fed has plans to open a new RRI on the Acropolis :grr:

[westerebus]

9. Look at the bright side.

We are the only nation on this planet that can print to infinity less one percent.

You can go around the planet and everyone knows the dollar is backed by a bunch of crazy people with nuclear weapons.

Who would you rather trade with? The EU or China?

Think about it.

[fasttense]

2. So much for capitalism and "free" trade.

"The European Central Bank said it will intervene in... private bond markets."

No doubt to keep private bond markets from the brink.