The term SMP 2.0 is devastating, as SMP (Securities Market Programme) is the scheme that the ECB tried last year, when it half-heartedly bought peripheral debt in a very mediocre attempt to suppress yields. The effect was minimal, and it hardly stemmed the crisis.
- Vaccine Education Summit
- Bitcoin Summit
- Ernie's Favorites
- THE R3VOLUTION CONTINUES
- "It's Not My Debt"
- Fascist Nation's Favorites
- Surviving the Greatest Depression
- The Only Solution - Direct Action Revolution
- Western Libertarian
- S.A.F.E. - Second Amendment is For Everyone
- Freedom Summit
- Declare Your Independence
- FreedomsPhoenix Speakers Bureau
- Wallet Voting
- Harhea Phoenix
- Black Market Friday
Details of the scheme were broken earlier today, and they basically come down to the idea that the ECB will buy sovereign debt in unlimited volumes, but there won't be an explicit cap on yields, and the ECB will "sterilize" its purchases, meaning that for every bond it buys, it will remove an equivalent amount of liquidity from the system somewhere else.
Spelling out the details of SMP 2.0
The main focus of this Thursday’s press conference will be a clarification of the modalities under which the ECB would be willing to intervene again in short-dated sovereign debt markets. In August the Governing Council declared that it “may undertake outright open market operations of a size adequate to reach its objective.”
Additional Related items you might find interesting:Related items:
News Link • Russia
News Link • Energy
News Link • Testing