The Lure of Europe…

25 Sep

ESM Plans “Plain Vanilla”  Borrowing Strategy to Lure Investors

Investments will be divided into a short-term tranche geared to capital preservation over one year and a medium- to long-term tranche geared to capital preservation over three years. The longer-dated tranche could risk a maximum 2 percent loss over one year, the document said.

The fund will buy and sell securities “in a prudent manner” to maintain its creditworthiness and “limit any effects on market prices, even in situations of market stress.”

Yeah, this will work…After decades of wild borrowing and spending, the EU now plans to act in a prudent manner… as Zero Hedge remarks..

Lure is truly such a great word here. After all nobody will ever get their money back.

Zero Hedge

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