Germany, Spain, Italy and France have met to hammer out a unified front ahead of the upcoming European summit and Spanish bailout. This is likely a fleshed out version of the G-20 plan that Barack Obama was privy to. Their answer is the 120 billion euro stimulus package that Francois Hollande has been pushing plus a likely relaxation in targets, what I am calling austerity lite. Meanwhile the ECB has decided to kick the ratings agencies out of the equation by deciding internally what kind of collateral it will accept. The combination of these moves plus the Fed's operation twist and more QE likely at the Bank of England are hallmarks of a coordinated push to stop the building deceleration in global growth.
Will it work though? I say no. The ECB plan is a surprise an...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.