Was QE2 a European Bank Bailout?

Discussion in 'Economics' started by MarketMasher, Jun 13, 2011.

  1. http://www.zerohedge.com/article/qe-2-european-bank-bailout-vehicle-story-picks-traction

    "To make the contrast even more clear, note that while Large domestically-chartered banks have cash assets of some $509 billion v non-cash ones of $6.840 billion (a ratio of around 8%), and small domestics hold $293 billion in cash against $3,595 billion in no-cash (a similar ratio of approx 9%), foreign banks have the startling sum of $940 billion piled up against non-cash assets of $998 billion for a ratio of an incredible 94%.

    Put another way, despite the fact that all domestics’ combined non-cash assets amount to getting on for ten times those of foreign banks ($9,633 billion v $998 billion), they actually hold 15% LESS cash ($803 billion v $940)."
  2. zdreg


    please explain further . it seems that european banks are much more cash rich than US banks. is this not better?
  3. Tsing Tao

    Tsing Tao

    Certainly would explain why all of a sudden the Budesbank is singing a different tune and saying that their banks are well capitalized to avoid and significant event.
  4. Maybe QE3 will be when the Fed gives all underwater mortgage holders a bailout - that would make the economy better, since "The consumer is key to the recovery." :D
  5. Follow the money, starting with AIG and that will answer the questions.

    QE2 was more than just a "WORLD BAILOUT", it was a move for a ONE WORLD CENTRAL BANK that Hillary spoke about a week ago.