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Krishna Memani of Oppenheimer Funds argues the likelihood of Italy and Spain going bankrupt is lower now that the ECB enacted the bond-buying program.
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-- and he makes a great point doesn't -- the actual problem so let's talk more about this.
And whether what they did today was enough to see Italy and Spain from gone bankrupt we're joined now by -- have a Miami director of fixed income at Oppenheimer Funds.
Christian I'm glad your here today because we see Italy pop.
About 4% Spain -- 4% so -- seem to be happy with what ECB president Mario Draghi had to -- -- -- -- -- -- He's spending -- billions maybe trillions to help them out as seriously though does the likelihood.
Speed noted need going bankrupt -- Euro breaking up.
Well as don't meaningfully because of this action from the ECB and that's what the markets are reacting about.
Though the long term problems relatively low growth or recession a depression.
In these countries hasn't been resolved that -- needs to be tackled with but they're not going back.
OK but it's a lot it's almost a lot of nothing new right we've heard this story before.
He did come out once before -- -- -- say I'll do -- whatever it takes whatever it takes and yet we haven't seen any action we still don't have in the fine details yet do you actually think is gonna go forward I.
Absolutely.
-- that because I think he indicated not indicated he BC he stated that the ECB isn't ready that couple other steps that need to happen.
One is that German those Supreme Court has -- -- idea EFSF and ESM -- Legal entities and I have a -- have these countries in addition.
The countries themselves actually -- who seek ESM EFSF -- I think and I think that's a big point there right but if you could stick with us for two seconds we've been talking about this new Kindle paper white.
And we have some final finally we have some pictures of -- we can show you.
As Adam -- has been reporting he is inside.
There's Amazon CEO Jeff he's just speaking right now it is called the Kindle paper -- It apparently has a better display better -- to be used in the direct sunlight battery -- eight weeks which is crazy.
He said that now these -- paper white can tell you how long it's going to take to -- chapter or book.
I'm not citizen -- -- I wanna know it carries your entire library.
I think the best part though is there will be three G and it's free on the version that will cost 179.
Dollars that version won't ship till October.
The based version now.
At 69 dollars.
And -- -- those earlier said part of the problem is people didn't wanna gadget they want to service.
That's why all the others before haven't sold he's pretty confident this one well -- -- as we get more.
Photos and information of course will bring it directly to you.
But let's get back to Europe now because Europe moving this market up 222.
Points right now let's talk about debasing the currency.
Because Ashley's guest that he spoke to did talk about that.
Much like what happens here with -- our dollars right we flood the economy with dollars then Bernanke Inco prince prince prince.
Is this same thing getting happen -- and can they afford to have a debased.
Let them doing it slightly differently than what Ben Bernanke did did -- -- -- -- sterilization process so whatever liquidity that they inject through these process sees.
-- are going to take it out through some other mechanism so to some extent that technically should have.
But I think that's really and academic point and the current state of affairs the rates in Europe up basically closed easier.
That means there's tremendous amount of liquidity in the in the market says it is.
Is this the business and on the currency probably yeah but this is something that they have to do because without that it'll be the ultimate amazement of the currency within your belly and up.
There's and that the ECB in theory according to treaties cannot.
By in the primary markets unless of course they change -- change you think all this will be bypassed we'll get through this.
So that they have they have been very technical about it yet ESM is supposed to buy the primary issues they are going to be buying these secondary issues so that's how they get around illegally acquire a lot of second but they're gonna do it has yet.
-- -- -- mining thank you for being.
