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<p>[QUOTE=&quot;Ginger1, post: 1993236, member: 72388&quot;]For years the concept of risk was ignored. For years countries like Greece, Ireland and Portugal could borrow on terms almost identical to Germany, despite massive differences in economic structures.</p><p><br /></p><p>Now, at a time when EU officials are desperately trying to convince markets that risk still doesn&#039;t matter – that you can still have reward without risk – the markets are not buying it.</p><p><br /></p><p>This puts mounting pressure on the European Central Bank (ECB) to &#039;do something&#039;. It meets on Thursday to discuss monetary policy. Bond investors will be sweating on the bank to open the liquidity floodgates and buy up peripheral European debt big time.</p><p><br /></p><p>Whether it will do this is questionable. But even if it does, such action would only push the problem a few months down the track. We&#039;re dealing with a problem of solvency here, not a liquidity problem. Such problems cannot be dealt with by temporarily monetizing debt.[/QUOTE]</p><p><br /></p>

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