PPP KINGDOM

PPP KINGDOM

HOW LONG CAN THE ECB PROP UP EUROPE’S SICK BANKS?

leave a comment »

The region’s banks may have so much bad debt they won’t even lend to each other.

ECB President Trichet working on Portugal's rescue

Four years to the month since the global credit crisis began, the European Central Bank has emerged as the lender of first resort to the Continent’s broken banks. With the bond market shut off to all but the strongest lenders, the ECB’s unlimited loans are keeping the most afflicted banks in Greece, Portugal, Italy, and Spain afloat. “Banks are becoming more nervous about being exposed to other banks as they hoard liquidity and become more suspicious of other banks’ balance sheets,” Guillaume Tiberghien, an analyst at Exane BNP Paribas, wrote in a note to clients on Aug. 19

http://www.businessweek.com/magazine/how-long-can-the-ecb-prop-up-europes-sick-banks-08252011.html

Best Regards,

FINANCIAL WARRIOR

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: