The European Central Bank (ECB) buys Eurobonds to defend its monetary policy, not to help commercial banks. What's your comment on this news?
In fact, this sentence is easy to understand as long as it is compared with the US rescue plan. The financial crisis in the United States mainly harms the banking industry in the United States, because banks have generated a large number of bad debts because of the subprime mortgage problem, which leads to the shortage of bank funds, thus affecting the liquidity of the entire economy. Therefore, the rescue plan of the United States is that the Federal Reserve will inject capital into large financial institutions to solve their debt problems. The debt problem in Europe is different from that in the United States, because its cause is not from commercial banks, but from national finance. Therefore, the main purpose of the European Central Bank's purchase of Eurobonds in the market is to help euro-zone countries obtain cheaper financing in the case of credit downgrade, financial deterioration and economic stagnation, and at the same time stabilize the euro debt market, so that euro-zone countries can implement fiscal slimming plans in the case of financial deterioration.