Unintended Consequences

This week we wonder about the consequences of the European Central Bank (ECB) issuing over €1 trillion in short-term loans to try and postpone a banking credit crisis and lower sovereign debt costs for certain peripheral countries in Europe. 


What if, instead of holding the European Monetary Union (EMU or Eurozone) together, that actually makes a breakup more likely? 


That would certainly fall under the rubric of unintended consequences, and be worth our time to contemplate in this week's letter.

John Mauldin 3 March  2012


ECB/Mario Draghi



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