Buying Junk Shows ECB Is Getting Desperate

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Buying Junk Shows ECB Is Getting Desperate

Would you lend taxpayer money to Volkswagen AG, the disgraced automaker that's worth 35 percent less than it was a year ago? How about providing financial succor to Telecom Italia, which both Moody's Investors Service and S&P Global Ratings regard as a junk borrower unworthy of investment grade status?

Those are just some of the unintended consequences of the European Central Bank's renewed efforts to resuscitate the euro zone economy by expanding its quantitative easing program to include corporate securities. This week, it effectively loaned state cash to both the Germany carmaker and the Italian telecoms company by including their bonds on its shopping list of securities purchases. No wonder the legitimacy of the central bank's decision to enlarge its mission is being challenged in the German courts. 
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[url=http://www.bloomberg.com/view/articles/2016-06-10/buying-junk-debt-shows-ecb-is-getting-desperate]read more
Virtual currencies are worth virtually nothing.
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