238p
The reason for this summer exuberance is my growing conviction that the European Central Bank will in the weeks ahead do what a central bank should have been doing all along - take action to stabilise the sovereign debt market of Italy and Spain. This would involve buying the bonds of those countries in the secondary market on such a scale that short sellers would be left running for cover. It would also have the dramatic impact of forcing up prices and significantly reduce the mark-to-market losses facing financial institutions and banks on their bond holdings.