Tuesday, December 18, 2007

[ecb] altruistic bastards

Ah, isn't that so altruistic of the ECB:
The European Central Bank has allocated 348.67bn euros($502bn; £249bn) to banks at a below-market rate in a refinancing move to ease tightened credit markets.

It is one of five central banks that have injected billions in emergency cash into money markets.

The aim is to cut the cost of lending between retail and commercial banks, which has jumped in the past few weeks.

Excuse me, the aim is to go silent on speculative lending [including sub-primes] in the banking sector then, when it all implodes, to lend directly to said greedy institutions at fire-sale rates, thereby creating direct indebtedness, as distinct from statutory indebtedness and thereby creating a direct pressure line on the average punter.

Something very useful when the crunch comes.


Rob said...

It's stupid, it's a waste of money. A crunch is coming and the banks can't stop it.

All there doing is making things worse.

It's so very stupid -- things can't go up forever.

Anonymous said...

This is a solvency problem, not a liquidity problem. This is not the solution. The problem will get worse
The silent ones will get richer, however.

Anonymous said...

More on insolvency, not liquidity. But the debate moves towards solutions?

Colin Campbell said...

I listened to this on the radio yesterday and it made me so mad. These guys have been high on the hog funding an unsustainable orgy and the second it looks a little dodgy they run and sit on their piles of dough, sulk and refuse to play.

I think it is probably just delaying the inevitable, pretty much what you have been predicting for some time James.