Understanding Zerohedge Cyprus Quote

[chaykapwr]

Quote from comintel:

Well they are intimately involved already in all of Cyprus, Spain, Portugal etc.

But what they are saying in each case is: We are conditioning further assistance (eg the OMT program) on the countries in question reaching fiscal agreements first with Eurogroup and the IMF. That seems eminently pragmatic and reasonable to me, and a very nice way to coordinate fiscal and monetary policy.

We have not even attempted any such coordination in the U.S. Bernanke is just writing blank checks with no conditionality on fiscal policy. No coordination at all.

Which is the better approach?

You mean like they did with Greece and Spain? On yea, they reached agreements right? How many fiscal targets has Greece achieved per the agreement? How many extensions have they been given to actually achieve some of them?

the whole agreements are a joke.

The only reason the ECB isnt being more active is because they know their most powerful weapon is TALKING about the bazooka and not actually using one because once they use it, the markets will realize they really have 0 control over the situation.

Ask yourself, what tools will the Fed have if the recovery fads again? (i sound like a perma bear but im just saying hypothetically) There isnt much more that it can do that will carry any real substance.