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Did the ECB Pull Off a Back-Door Bailout that’ll End the Crisis?

Yields on short-term peripheral sovereign bonds are plunging, despite the fact that EU leaders appeared to make little progress at their highly-anticipated summit last week.

Pundits continue to expound on the flaws of the eurozone but markets are telling a different tale.

That’s because the European Central Bank may have already introduced roundabout measures that will solve some of Europe’s big problems—it’s making investing in peripheral sovereign debt a huge profit opportunity for banks.

Theoretically, financial institutions will be able coin money by borrowing ultra-cheap from the ECB and buying higher yielding sovereign debt.

Read more: http://www.businessi…2#ixzz1ght8Apcq

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