ECB pumps record €442bn into system

The European Central Bank has pumped a record €442.2bn into the eurozone banking system in a first-ever offer of unlimited one-year funds as it battles continental Europe's severe recession.

The results of the operation, part of ECB efforts to revive the eurozone economy by rejuvenating the financial system, highlighted expectations that liquidity will not be available again on such favourable conditions. The previous largest amount injected in a single ECB operation was €348.6bn in December 2007.

Demand for the one year funds - offered at the ECB's main policy rate of just 1 per cent - appears to have been boosted significantly by financial markets' growing conviction that ECB interest rates will not fall any further.

The operation is expected to push down significantly market borrowing costs, including 12 month interest rates, which are already lower than in the US. Julian Callow, European economist at Barclays Capital, added: "This gives the banking sector greater confidence still in order to be able to make loans and acquire assets."

That means that all eurozone banks received as much ultra cheap medium term liquidity as they thought they needed. It doesn't change their risk aversion, but it takes away any excuse not to lend linked to financial markets.

In the long run, we're all dead. John Maynard Keynes

Makes me wonder what else happened while my back was turned.

Jesus died for somebody's sins but not mine - Patti Smith

you are the media you consume.

A republican of course.

keep to the Fen Causeway

you are the media you consume.

Credit crunch takes toll on super-rich

The ranks of the world's super-rich have been shredded by the credit crunch, undermining the theory that the wealthy are better at holding on to their money.

The global population of "ultra high net worth individuals" - defined as those with at least $30m (€22m) to invest - shrank by nearly 25 per cent in 2008 to 78,000, according to the latest World Wealth Report produced by Merrill Lynch and Capgemini. The collective net wealth of these super-rich slumped by 24 per cent after a year of bank crises, government bail-outs and stock market routs.

High net worth individuals - worth $1m, excluding their homes - fared poorly as well but not quite as severely, suffering a 19.5 per cent decline in their wealth. The population of these individuals fell by 15 per cent.

The unprecedented declines wiped out two years of robust growth, reducing both the total number of rich people and their wealth to levels last seen in 2005.

2005? Poor things.

In the long run, we're all dead. John Maynard Keynes