Quote from Lawrence Chan:
As I said in the update post - all upto PPT. [/B]
Registered: Feb 2007
Posts: 15999
10-11-12 11:57 AM
Yet despite the significant public resources being
deployed to the periphery, private sector confidence
has remained low. Concerns over a possible euro area
breakup have led to extreme fragmentation between
funding markets in the core and the periphery (Figure
1.8). The announcement of the OMT program in
early September has helped address such concerns
and reduce sovereign spreads between the periphery
and the core. However, periphery bank and corporate
spreads have narrowed less, which may act as a brake
on recovery. Banks, insurers, and nonfinancial corporations
are trying to match assets, liabilities, and collateral
in each country of the periphery as protection
against redenomination risk. In turn, liquidity in core
economy banks is not being recycled to the periphery
but is instead being deposited at core
http://www.imf.org/external/pubs/ft...02/pdf/text.pdf did not read the thing but page 4 and 5 were sounding pretty dire