Hot on the heels of LTRO II, the ECB overnight deposit facility has hit a record high of Euro776.94BN.
This of course is rather "ironic", given that Draghi et al were claiming that LTRO II was aimed at stimulating bank lending.
They of course knew that it would be used by banks to sandbag themselves against the oncoming Greek default, but couldn't admit that.
Showing posts with label ltro. Show all posts
Showing posts with label ltro. Show all posts
Friday, March 2, 2012
Wednesday, February 29, 2012
Happy LTRO Day II
Well my earlier bet on LTRO as being around Euro650BN was wide of the mark!
The ECB's 3 year LTRO has just been announced as being Euro529BN, given to the 800 banks which have come forward with their begging bowls.
The ECB's 3 year LTRO has just been announced as being Euro529BN, given to the 800 banks which have come forward with their begging bowls.
Happy LTRO Day
At 10:20GMT today we will know how much money has been borrowed under the ECB's LTRO scheme, which is being used to sandbag banks in the likely event of a sovereign debt default.
The ECB claims that the money will be used to stimulate growth, the reality is that it will be placed by the banks at the ECB to be used when the forthcoming Greek default causes a run on the banks.
For what it is worth, I am taking a non financial punt on LTRO being around Euro650BN.
The ECB claims that the money will be used to stimulate growth, the reality is that it will be placed by the banks at the ECB to be used when the forthcoming Greek default causes a run on the banks.
For what it is worth, I am taking a non financial punt on LTRO being around Euro650BN.
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