Wednesday, February 16, 2011

16/02/2011: Banks issuing loans to themselves

Note from the banks front:

ECB’s printing machine keeps working over time. Greek and Irish banks have issued at least €70 billion of bonds to themselves to create the collateral required to get cash from the ECB before last week. Then, Greeks announced they will issue €30 billion more unsecured bonds to themselves for the purpose of pawning these at the ECB. The European Central Bank's balance sheet now funds the equivalent of 18% of Greek banking sector assets, 15% of Irish and 7% of Portuguese. CBofI holds another 7%.

Some amazing 'innovation' on financial front this is.


Georg R. Baumann said...

Sigh... Looks like the EUdSSR is determined to build EU's biggest bad bank, ECB.

forex signal said...

I think is time to abolish central bank systems anyway. They did not deliver price stability and elastic money supply. Instead they have printed tons of euros and false collateral, leaving the world we know in ruin.In 2013 FED mandate is up, they should not extend it.
We all heading toward inflation with no breaks very soon.
Great work Constantin!

Joseph Condron said...

At this stage we would be lucky if it was just inflation - but it could become stagflation.

I, like many others, have been an interested observer looking into the Irish financial crisis.

I am part of a duo that run a new Irish website, Yellow Magpie.

We have published an article that summaries the Irish problem in its entirety and places it within the context of deregulation.

You can check it out from this link

We would be very grateful if you would mention it in your site as we feel that it is a topic that deserves attention and one which we feel the public should know about.

Kind Regards,




Once the General Election is out of the way can sovereign default be far away?

Fungus the Photo! said...

Constantin, TINA!

What else can they do? All those fat cat jobs that are frankly useless! The money machine is broken as a wealth creator, but by cranking the handles money still comes out! That it now destroys prices is something they overlook! After all, they are getting paid.....

It will take several changes of government before we find our Alexander, sword in hand, to cut the Gordian knot!

I still say that default will only occur after the EZ runs out of ink for the printing press. Oncer their hush money is cut off there will be a default. They are now the ones on the hook.