Tuesday, November 22, 2011

178 Banks Requested Money from the European Central Bank

The crisis in the eurozone is keeping EZ banks from lending to one another, and U.S. money market funds, which are key providers of liquidity to banks, have been pulling back from the euro zone since May. The MM funds cut their exposure to European banks by a further 9 percent in October, according to the ratings agency Fitch.

MM funds have cut their European exposure to the lowest in percentage terms since Fitch started compiling its data in 2006.

CNBC reports:
Fitch said its sample of the top 10 U.S. money market funds had a $224 billion exposure to Europe's banks at the end of October, down 42 percent from the end of May.

Funds cut their exposure to French banks by 19 percent in October and by 69 percent since May. They have also shortened maturities, and more than half the exposure to them was for seven days or less at the end of October, Fitch estimated.

The funds also cut their exposure to German banks by 16 percent and to Nordic banks by 14 percent during October.

The ECB's weekly report on limit-free handouts shows 178 banks requesting a total of 247 billion euros.

Bottom line: The eurozone is on the edge of collapse. Either the ECB prints huge amounts of money, or the EZ is done. Huge money printing will, of course, result in major price inflation. If the EZ collapses, countries will resort to their old currencies and will likely print huge amounts of those currencies. The only sane alternative, where countries simply go bankrupt and start over on sane footing, is a non-starter with the banksters who own good chunks of the government paper.


  1. The Real Newt Gingrich


    Gingrich has the greatest toxicity of Georgia's venomous serpents - the southern copperhead. It will strike the uninformed, sound-byte/catch phrase gawker, and unwary. "It" is the most toxic of any Republican to American liberty. "It" slithers amongst us and is fatal to cuddle and coax. Don't let your mind be newterized to danger. Run away from "It" when encountered.

  2. If I change my name to "bank", can I get them to steal from the taxpayer-fools for me? I don't know why anyone actually works for a living...Or more specifically, works for their depreciating counterfeit currencies. Idiot slaves.