It seems like we have gotten to the point where the stability of the global financial markets for the day depends on whether or not the European Central Bank is buying bonds on the open market. When the central bank is buying the bonds the markets tends to look stronger. However, when they are not in there the markets seem to lose all confidence. This short-term buying of debt is clearly not a solution for the long-term, thus the urgent need to develop a credible plan that the markets will respect.
The latest proposed plan on the table has some leaders calling for the European Central Bank to lend money to the International Monetary Fund to streamline a process for countries in trouble to access funds. This of course is on the back end of a plan to leverage the EFSF, or European Financial Stability Fund that can’t seem to gain traction amongst all nations. If successful, this could be the catalyst that the world has been waiting for to stop the crisis from getting any worse.
I know I have been urging everyone to stay more connected to their financial professional, but in times like this it is truly essential. Never be afraid to ask a lot of questions in order to get the right answer.
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| From Financial Planners Ft Myers |
Eric Marvin
JPT111811-1888
