European Central Bank and the Greek bailout. Utter incompentence?
As of this morning we learn that finally, after several months of struggling the Greeks got their bailout. However as this Bloomberg story reports , something is quite peculiar about the arrangement. Specifically, this line: In October 2008, the ECB cut the minimum rating for all the government debt it accepts as security for lending to BBB-, the lowest investment grade, from A-. That part is rather clear, the ECB had certain guidelines, as they should, for the quality of debt that a member can issue. After all, if you plan to have an exclusive club of merchants the least you can demand is that the members do not consist of homeless drunks from the local alley. Yet they are changing these rules... It extended the policy change indefinitely on April 8 this year as it became clear a return to the old rules may exclude Greece. Huh? Suddenly the rules for membership have changed to accommodate the homeless drunk? Indefinitely? So instea...