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Currency News – Italian and Spanish Bonds Bought By ECB

In a move to stabilize the Italian and Spanish bond markets, the ECB has stepped in and started buying bonds. As you may have remembered, last week Italy pledged to speed up its financial reforms and get things under control sooner than expected to gain the support of the ECB. Because of that, they are now stepping in and trying to ease the tension.

Usually, the ECB does not participate in actions like this, but at the currency point, there really are no other options. If they stand idly by, there is no doubt that the economies of these two countries will continue to fall and bring down many others with them. The money they are spending on these bonds is almost nothing compared to the losses the Eurozone would accrue if they were to fall into a deeper financial hole.

Investors are being wary of shorting Italian and Spanish bonds knowing the ECB is buying them up – this should be enough to calm things down for a little while.

 

England, Euro Countries To Get A Rating Cut?

A prominent investor, Jim Rogers, has stated that quite a few Eurozone countries are bound for a debt rating cut in the next little while if action isn’t taken to get things under control.

While almost all of the attention has been squarely focused on countries like the US, Greece, Spain and Italy, there are quite a few other countries around the world that are feeling the effects with great magnitude. Once everyone gets settled down and starts objectively looking at the financial positions of these other Eurozone countries, there is a good chance quite a few of them will be downgraded.

 

G7 Ready To Battle Debt Crisis

After the financial chiefs from the G7 nations conferred by telephone on Sunday, there is new hope that they are ready to take major action to get the global debt crisis under control.

While the actual details about what they talked about and decided have not been released yet, there is hope that something major is in the works. No one knows more than these leaders what kind of shape the world economy is in and the dire effects it could have on a global scale.

We will have to wait a little longer to see what action is actually taken, but there is a good chance details will be released either Monday or later on in the week.

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