>>Breaking up EU?
The board for the "traditional solution" is being set up...
WOULD YOU LIKE TO PLAY A GAME
_?
Let's hope the players haven't forgotten that the Thermo Nuclear War Game is only as winnable as Tic Tac Toe.
Posted on 08/21/2008 9:01:04 AM PDT by TigerLikesRooster
Bank borrowing from ECB is out of control
By Ambrose Evans-Pritchard
Last Updated: 3:06pm BST 21/08/2008
The European Central Bank has issued the clearest warning to date that it cannot serve as a perpetual crutch for lenders caught off-guard by the severity of the credit crunch.
Not Wellink, the Dutch central bank chief and a major figure on the ECB council, said that banks were becoming addicted to the liquidity window in Frankfurt and were putting the authorities in an invidious position.
"There is a limit how long you can do this. There is a point where you take over the market," he told Het Finacieele Dagblad, the Dutch financial daily.
advertisement "If we see banks becoming very dependent on central banks, then we must push them to tap other sources of funding," he said.
While he did not name the chief culprits, there are growing concerns about the scale of ECB borrowing by small Spanish lenders and 'cajas' with heavy exposed to the country's property crash. Dutch banks have also been hungry clients at the ECB window.
(Excerpt) Read more at telegraph.co.uk ...
Ping!
Europe was always more exposed to the housing crisis than the U.S., but the euros have been putting off the medicine that we are currently taking here in the States.
Sure, we can keep this Keynesian fairy tale going forever! NOT.
—Not Wellink
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