Today the ECB president Mario Draghi
disappointed the markets (and many more) taking no particular
action to ease debt prices for Spain or Italy. Acting surprised, he affirmed
that he didn't really mean anything when he stated in London a week
ago that he will do “whatever it takes to preserve the euro”.
Apparently his words “believe me, it will be enough” are not an
indication of any action for now, but just a general promise that we won't go back to the peseta and the lira.
The “whatever it takes”, in fact,
has been used again and again in the last two years by Chancellor
Merkel and is present in virtually all statements by the European
Council. Sometimes they change to "whatever is necessary" and "whatever is required". Those of us who have followed this closely almost laugh
about it. But of course in this context, citizens, politicians and
investors thought that the EU would know better about empty
statements and would start filling those words with more actions,
especially the ECB. If you say something, do something.
When the Federal Reserve says something it is aware of the consequences. President Ben Bernanke is particularly
fond of predictability. And we know that the Fed is
probably going to take some action in September. Because it said yesterday it will act “as needed”. There are roundabout ways here too, but they
usually mean something.
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