European Salon de News, Discussion et Klatsch - 14 March | 115 comments (115 topical, editorial, 0 hidden)

Re: Shocking statistic of the day (none / 0)

IMHO the LTRO is for banks to go all-cash in preparation for the Eurogeddon which might befall us within the next 3 years.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Wed Mar 14th, 2012 at 02:09:37 PM EST
[ Parent ]

Re: Shocking statistic of the day (none / 0)

If banks need cash, they could and should go ask their owners for the cash. I think the LTRO is a way for the ECB to backstop certain parts of the EZ sovereign debt market, while allowing the Bundesbank to pretend that nothing of the sort is actually happening.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Wed Mar 14th, 2012 at 05:48:13 PM EST
[ Parent ]

Re: Shocking statistic of the day (none / 0)

There's no reason why you couldn't buy sovereign debt and repo it weekly instead of using the 3-year LTRO, since the weekly auctions are also unlimited tender and charge the same rate of interest.

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Wed Mar 14th, 2012 at 05:58:46 PM EST
[ Parent ]

European Salon de News, Discussion et Klatsch - 14 March | 115 comments (115 topical, 0 editorial, 0 hidden)

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