M&G: Europe needs 'shock and awe' action or crisis won't stop

EUROPE NEEDS 'SHOCK & AWE'

M&G bond manager Stefan Isaacs says the ECB must initiate ‘shock and awe' policy action to support the fragile European Union.

It is time for the European policy makers to step up and support an ever more fragile European Union. Mixed messages equal confusion which in turns results in risk aversion. And that risk aversion seems pretty sensible to me. If you are going to panic, panic early! Bank runs typically result from a loss of confidence; why take risk as a depositor when you aren't paid to do so? Take Spain. Until last week its government bonds were paying no more than they were back in July 2008. Yes Spanish inflation has fallen, and yes the ECB has slashed its main refi rate, but does that compensate r...