The European Central Bank

[jonah35]

So, the ECB keeps buying loads of old junk in some people's eyes such as Italian and Greek bonds.

Who on earth in their right mind is letting them do this? Surely the ECB will be loaded up with dodgy 'junk' bonds if it's not careful. Where is it getting it's money from and why is the ECB deliberately loading itself with dodgy assets? Isn't this reckless?

I know they are 'helping' out the PIIGS etc but surely that's like saying us giving a crack addict more crack is helping them out - in the long run we are doing more harm than good.

My personal opinion on the subject (for what it's worth) is that countries should consider slashing their expenditure on welfare, defence, overseas aid etc and using the savings to pay down their deficit. It would really cause havoc for a year or two or three but eventually the market would find it's equilibrium and from there could move forward, steadily, on solid foundations.

At the moment, I think we all agree that we are just delaying the inevitable. Hands up if you disagree!