European Central Bank chief Mario Draghi helped end the 2012 crisis by promising to do “whatever it takes” to stabilize markets. But Marcus Ashworth notes the ECB is treating Italy’s agita like a parent reacts to a kid’s demand for ice cream – by saying, “We’ll see.” Until the ECB puts its money where its “whatever” is, contagion will continue, Marcus warns.
Archiv: contagion (finance)
Panic, Crisis In Italy: Dealers Pull Bids As Bonds, Stocks Crash; Euro, Deutsche Bank Tumble As Contagion Spreads
With UK traders returning from vacation, Italy woke up to a sheer selling panic as yesterday‘s „modest“ selloff mutated into a full-blown liquidation avalanche, lead by a furious repricing of the BTP curve, where 2Y yields exploded another 170 bps higher on the day rising to 2.60% from negative just a few days ago…