Central banks on stand-by to initiate monetary easing plan in Europe, say G20 Officials – Part 1

Greek national elections pose a new threat to the European market, if the left-wing Syriza party leader Alexis Tsipras wins the polls and takes over the reins of the country. The Euro banking sector is expected to take a severe blow if the above premise proves to be true.

Tsipras has openly rejected to form a coalition government with other major national political parties and has also rejected the austerity plan for the country.

His plans to run the government are enough for the European stock markets to take a deep plunge. However, the central banks in Europe, the US and Latin America have offered a monetary liquidity plan to bail the markets out if such a catastrophe ever occurs.

Should the Greek elections cause a tumultuous condition in the Euro markets, central banks are ready to inject dollar money into the system on cheaper rates; the information was allegedly leaked by the leaders in G20 Summit, held in Los Cabos, Mexico.

Federal Reserve has already revved up the engine and has urged other central banks to ponder on the suggestion of monetary injection into the system. Country leaders and corporate heads will be closely monitoring the Greek elections for the reason that the results may put the markets in a complete frizzle.

Heads of the banks have confirmed that they are on stand-by to inject dollar into the Euro Zone on lenient swap lines to avert an economical atrocity that has the potential to mirror the 2008 crisis spurred by the insolvency of then-market leaders, Lehman Brothers.

The likes of Federal Reserve have already started negotiations with European central banks to inject dollar into the system on cheaper rates of return. Other banks like the ECB, and the central banks of England, Japan, and Switzerland have also joined the US central bank to provide the market with unlimited dollar money to sustain the prosperity.

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Posted by Usman Khalid on Jun 15 2012. Filed under Business, Europe. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.