Emergency Central Bank Intervention Coming?
It hardly matters as only buys time at best.
by Stephen Lendman
Greece is a corpse. It's waiting for its obituary to be written. Spain is on life support. Portugal and Ireland are wheezing. Italy is breathing hard. Britannia is sinking. America isn't far behind.
Progressive Radio News Hour regular Jack Rasmus said significant private sector job creation, housing recovery, and state and local government spending increases followed 11 post-war recessions.
In contrast, Obama's first term achieved nothing. "There have been no effective jobs program, housing-foreclosures solution program, or state-local government spending program. That tripartite failure is at the heart of (his) failed economic recovery."
Conditions in Europe are worse. Will they or won't they? At issue is Fed QE III and massive ECB monetary intervention. Rasmus says smart money isn't sure. It can go either way. It can be some but too little to matter. It can be substantial and accomplish nothing.
On August 2, we'll know. Or will we? The ECB's governing council meets. It may act, do nothing, or defer to a later date. ECB authority is limited.
The Fed may move now or post-election. Rasmus ups the odds for intervention then. At the same time, whatever it does leaves deep-seated problems unresolved.