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  • ECB Will Lend Banks More-Than-Forecast $645 Billion to Keep Credit Flowing

    From bloomberg.com

    Read Full Story at bloomberg.com

    The European Central Bank will lend euro-area banks more than economists forecast for three years in its latest attempt to keep credit flowing to the economy during the sovereign debt crisis. The Frankfurt-based ECB awarded 489 billion euros ($645 billion) in 1,134-day loans, more than economists’ median estimate of 293 billion euros in a Bloomberg News survey. The ECB said 523 banks asked for the funds, which will be lent at the average of its benchmark rate -- currently 1 percent -- over the period of the loans. They start tomorrow. Government bond markets may continue to rally if demand for the ... (full story)

    • giorgio79

      91 posts
    • I would like to borrow for 1% as well. Where can I send my application?

    • Happy_Camper

      22 posts
    • ...it's the end of the world as we know it... it's the end of the world as we know it... AND I FEEL FINE ! ... :-) lol

    • Guest

      IP XX.XXX.34.145
    • The banks will save themselves.
      Does anybody think that banks will buy up all the government debt after the politicians lend the money to them?
      If so,it can only last so long until this goes bust as well.
      What private investors want to take the chance of another Greek situation where they get screwed?

    • traider

        700 posts
    • Quoting Guest
      The banks will save themselves.
      Does anybody think that banks will buy up all the government debt after the politicians lend the money to them?
      If so,it can only last so long until this goes bust as well.
      What private investors want to take the chance of another Greek situation where they get screwed?
      The banks require this funding as their balance sheets are chock full of bad paper from the sub-prime era. Its the only way they can appear liquid from year to year. Take away this funding (until they resolve the legality of the paper) and the financial system worldwide would seize up.

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