European banks rejected most ECB loans, as oil and stocks were already too pricey?

Discussion in 'Economics' started by crgarcia, Aug 3, 2010.

  1. Unlike American banks who got cheap loans from the Fed to buy $35 oil and 6,500 points Dow Jones?

    Maybe European banks will get loans to profit after the next market crash?
  2. You're an idiot and have absolutely no clue what you're talking about, but I think we knew this already.
  3. Euro banks run very efficiently and prefer not to have idle M1 on thier balance sheets. It is a cultural (de)norm. Just to have cash that comes from the ECB would be a forcing hand making the Euro banks take excessive risk. The current market enviroment does not have alot of low hanging fruit. The ECB appears to be force feeding the EU system and the banks know better than to take a loan from central with expectations of large returns.

  4. Banks know that they borrow in a bubble, and do in a deflation. In a deflation, they want to lend and not borrow.
  5. Guys, please, stop spouting nonsense... You have no clue what you're talking about.

    The European banking system is running a liquidity surplus of arnd EUR 100 - 200bn, depending on how you account for it. Most of that money is borrowed from the ECB at 1% (3m and shorter maturity) and then gets placed on deposit at the ECB at 0.25% o/n. The reason they do this has nothing to do with deflation or taking risk. It's simply because, for a lot of banks, the ECB is the only place where their assets can be funded.
  6. Actually, ECB is the only way of financing for most (broke) european banks.
  7. While that's the case for a few European banks, it's certainly not the case for most. Moreover, the issue is a lot more complicated than these banks simply being "broke".
  8. It is not about the banks it more about der transfer payments that will need to be made to the the citizens of the EU. The banks are the ones being given a task to create capital to mainitain a schelcktest social welfare system.

  9. ?????????
  10. You don't speak or know German / Deutsche / Allemagne.

    #10     Aug 11, 2010