You Down With OMT?
If you're confused about the European Central Bank's plan to save Europe, you're not alone. There seems to be a contradiction within the plan: how does one reconcile the promise of unlimited purchases with the concept of sterilization?
Everyone understands the meaning of unlimited purchases, but it might be helpful to explain sterilized vs. unsterilized buying. In theory, a central bank can simply print money and use it to buy bonds. There is no limit to the amount that could be printed and it could continue until every last bond is purchased. If there is no offset to the money being spent, the bond purchases are described as unsterilized....409 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.