The ECB can buy my old bottle cap collection

From today’s Open Europe news summary:

Market players warn ECB could run short of sovereign bonds to buy

Reuters reports that a number of banks have warned that the ECB may run out of sovereign bonds to buy, particularly if it ups the size of its monthly purchases. The ECB would either have to alter its 33% limit of bonds per sovereign issuer or expand its purchases to other forms of bonds. Meanwhile, ECB Supervisory Chief Danièle Nouy has said, “We do observe a trend towards higher risk-taking by banks…in its search for yield.”

The ECB doesn’t have to buy sovereign bonds in order to stimulate demand. It can buy anything. I am willing to sell it my old bottle cap collection. I would not object if the ECB placed a very high value on it; I certainly did when I was seven or eight years old. A few million euros would certainly cause me to increase my demand for the many luxuries of life, which undoubtedly would stimulate demand in certain sectors. How about it, ECB?

Patrick Barron

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