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Forex.com research director Kathleen Brooks on whether Draghi's bond-buying program will help the eurozone.
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-- -- the -- -- radical new measures to tackle the eurozone debt crisis earlier today the planned roll out the ECB to buy government bonds.
In -- limited qualities quantities.
To eliminate the tail risk in the region will this be gain changer for the Euro crisis and is even within their mandate that's where I'm wondering Kathleen Brown.
Is -- record for acts and she's here to -- cap can do this first and foremost I mean I've heard people questioning that already what do you think.
Climbing day count because they've done it before I mean they didn't like -- S&P program MySpace dot did in May 102010.
Do in the peak of that -- Greek crisis say there is a precedent for its.
I'm Tina I think -- HIV -- -- bending the rules and integrity -- his way.
Where is -- ends -- very clear cut in a -- is financing governments and we got like -- but they allow painted.
Yeah -- do you think that this solves the problem does gets -- heart of it is it just a short term solution what's your back.
-- -- -- is solves the problem but it does get some -- it -- into it to providing guidance -- I mean they need to let governments to do it.
Defense thing I think it that is great influence -- -- that is that it remains thin.
Economists fear factor if you like -- -- bang out you know people have been saying that wants Greece guys and then Spain -- that's going to be the end of the yours and we'll find out -- not -- -- anything.
European authorities like ECB is saying Spain -- got an extent to bite out and then will stop buying -- bonds.
And the second thing -- talking some -- trying and trying to instilled fiscal discipline and India Wednesday by saying you know we're not gonna buy a bonds unless he signed not today's -- -- and -- -- -- fiscal austerity program does.
Do that now I mean doesn't really solve the fiscal austerity problem -- it solves the bond problem it stops you know freezing.
The bond market but it doesn't solve the greater problem of government spending more than they.
Well you know it could -- some weighted toward instilling discipline that the kids strong he's made very -- clear I think have a stamp on Gemini or -- -- that.
I -- and I agree to these fiscal consolidation plans.
We gonna stop buying of bonds and you know what we -- -- selling them.
Say if they really do need to get paid they get into real trouble financing trouble Spain does -- -- the next couple of months.
And it needs ECB to step -- to reduce its financing cost and it doesn't sign out what government agreed doesn't government -- pool.
And then we can easily see out -- easily see the ECB make things -- -- -- to Spain.
And I think Megan about the -- an estate without the they don't want another Greece and my hands and you believe that you think they would falter and that kind of threat and that those governments are gonna take them seriously.
Well I believe that you know we -- -- that we would have been designed being so is so quick scan the bond buying an -- shape willful.
And then being the pay -- I think could be quite -- -- to -- back now.
It's a credibility issue I think you know that's why -- that's I think one of the reasons why the markets have I have accepted this plot is that.
You know what he could be on paper anyway in the Middle -- she could about -- bond buying plan as I was getting give money away.
An and -- never taken at face value meal right as no great president agrees.
But I think athletic and try to -- -- eight and another must be a price to pay somewhere down the -- maybe I'm buying gold from now on I'm not sure Kathleen Brooks thanks so much.
Thank.
