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Eurozone Financial Crisis – Clouds Gathering Again

Or rather not dispelling. On an interesting twist, the situation with the European finances got again worse these days. And when the things get worse, the European powerhouse, aka Germany, stepped in. Even she might not want it. Angela Merkel found herself at the pinnacle of the battle yesterday (Sunday), when Bundesbank said that the ECB bond-buying policy is “like a drug” to the markets. To add more spice, a leader from the Bavarian Christian Social Union (CSU), Alexander Dobrindt, spoke out that Greece should be left to go.

Despite these pressures, the German Chancellor Angela Merkel seems decided to support the ECB policy’s in gradually buying its way out of the crisis. The reason is simple and interesting – it seems that the European leaders are expecting better times to come (and the worst to have already passed). With Mario Draghi on tour to convince other central banks to support the European monetary policies, it seems that at last the FED, ECB and other G20 central banks are arriving to a coordinated action to calm the markets. Which would be something new and beneficial not only for the European Union, but also for a USA contemplating a double dip recession. Will it work? We will see…

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