Always coming back to the ECB is the magic bullet, eh?
Yes. I've been pretty much making the same point for over a year now. During that time, I have been joined by numerous individuals, including Nobel Laureate Paul Krugman, Chairman of the Financial Services Authority Adair Turner, noted economist Barry Eichengreen, US Treasury Secretary Timothy Geithner, Nomura Securities head of research Richard Koo, French Finance Minister Francois Baroin, former Bank of England policy maker and Citi chief economist Willem Buiter, Irish Prime Minister Enda Kenny, Polish Finance Minister Jacek Rostowski, IG Markets analyst Soledad Pellon, Barclays Capital economist Antonio Garcia Pascual, the editorial boards at both the Economist and Bloomberg Businesweek, and many, many more.
When I started pushing it a year ago hardly anyone was agreeing with me. Now, many, many people are, but not the ones who matter.
Exactly, there are many other factors. And it's not just an incomplete catalyst predictor, it's also an incomplete predictor, period. When Argentina defaulted in 2001, its debt to GDP ratio was only 65%. Many countries have had higher ratios than that and eventually brought it much lower. Even if you look at a single predictor, there are many better ones out there.