Portugal again!

Location Date: 
July 7, 2011

It is a new day so new news for the PIIGS – Portugal was spared the sword, at least temporarily, by JC Trichet, Head of the ECB. In a move that will bring back more bad memories (think the FED accepting anything as collateral from the banks - back when it had a real balance sheet) comes news that the ECB will suspend its’ minimum credit rating threshold on Portuguese bonds, at least for a while. This has prompted a number of very funny Twitter posts summed up on FT’s Alphaville blog site (Click Here), that include such items for ECB collateral now as:

Funny stuff. Meanwhile Mr. Trichet drops a quarter-point rate hike on the PIIGS, just to let them know that inflation in Europe will not be tolerated; Welcome to the union!

Jim McGovern