Trichet says he had to do this because the rescue fund has not yet received the authority to buy bonds. Merkel agreed to let it be raised to 440 billion euros but has said “no” after that. Wolfgang frowns when anyone suggests making that amount greater. The German taxpayers don’t want any such liability.
Besides Trichet’s move didn’t do anything for European stocks yesterday, which were swept up in the downward spiral sparked by the U.S. downgrade. Schauble probably thinks that’s a lesson to be learned. No move will matter unless each country gets the fundamentals straight. Giving money to countries only makes them ineffective and dependent. Adopting austerity measures teaches them a lesson.
That’s called coloring the world Germany.