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Wojciech Bialek: hossa instead of Armageddon
2012-06-28 14:16

 There should be realization of the idea to issue euro obligations or European version of Quantitative easing.

I am not an “armagedonist”, so I do not reckon that the markets will reach some final and absolute point. The markets’ behaviour is rather sinusoidal. Wojciech Bialek, the senior analyst of CDM Pekao believes that phases of inflation, disinflation, deflation (which can be seen now) are by phases of reflation, which will force the markets to grow.

When will hossa be back?

When the investors start to escape from secure assets, such as german for example, and start to purchase venturesome assets.

 


 This is real. The new president of France again touched upon the idea of euro obligations, i.e. papers issued by Euro zone countries which member guarante and secure them on the equally basis.

If they were implemented in life, Germany would be get guarantees from the peripheral countries.

Wojciech Bialek adds that the effect would be drop in profitability rate of obligations from peripheral countries and raise of German obligation.

Will it happen? He says that Chancellor of Germany, Angela Merkel rejects such ideas, but the question is whether this is bargaining or the German politicians take into consideration negative reception of this idea by public opinion.



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