Nearly a year’s worth of anticrisis lending measures have sent the ECB’s books to a record EUR2.73 trillion, some 29% of the euro zone’s gross domestic product. This expansion, capturing both the collateral pledged by banks receiving funds from the central bank and the sovereign bonds it has purchased for its own account, has been welcomed by bond investors, who see it as a stabilizing force. But the excess liquidity bodes for a weaker euro, and has some wondering if the ECB’s own solvency could eventually be in peril.
via Swelling ECB Balance Sheet Brings Relief, Poses Risk For Euro – WSJ.com.
The $700bn Question?
So what does $700bn get you? Simple it bails the people at the top of the money food chain out, and gets the ordinary man into more debt.
The more and more you look at the so called finicial crisis (greed karma) the more and more you see people feathering there own nests, the greed that got so many banks into this problem, is still there and apparently more prolific than ever. Not content with making a mess of their own systems of finance they want the common man to pay for their mistakes, and bail them out – yet again.