Posted on 09/19/2014 1:27:14 PM PDT by Kaslin
Following on the "success" of the ECB's LTRO (Long Term Refinance Operation) which did nothing to spur lending and everything to create the biggest sovereign bond bubble the world has ever seen, ECB president Mario Draghi announced a TLTRO or Targeted LTRO on September 4.
The ECB's intent is to spur lending.
Lending Spree Short of Expectations
Today the Financial Times reports ECBs Lending Spree Short of Expectations.
The European Central Banks first offer of cheap four-year loans has fallen short of expectations, dealing a blow to president Mario Draghis hope of sustaining the eurozones ailing economy by expanding the central banks balance sheet.Why TLTRO Won't Spur Lending
Banks borrowed 82.6bn through the first of the ECBs Targeted Longer-Term Refinancing Operations, or TLTROs, one of policy makers big ideas to revive the currency areas recovery. A poll by Bloomberg earlier this week showed economists, on average, expected banks to bid for 174bn of loans from a maximum of 400bn.
Analysts said the disappointing take-up would pile pressure on the ECB to embark on large-scale government bond buying, or quantitative easing, before the end of this year. With inflation as low as 0.4 per cent in the year to August, the central bank is struggling to hit its inflation target of just below 2 per cent.
The TLTROs allow banks to borrow at a rate just above the ECBs main refinancing rate of 0.05 per cent until late 2018 so long as they meet targets for lending to businesses. If they miss the targets, they must pay the funds back in 2016.
The ECB will conduct another seven auctions, with the next TLTRO taking place in December. The central bank hopes the auctions, through which it will lend a maximum of 1tn over the next three years, will boost inflation and restart the regions flagging economic recovery by spurring lending to smaller businesses.
Electric Culo Braising?
Elite Cult Buttsecks?
Entire Cocaine Business?
Eddy’s Carwash & Beauty shop?
Eager Cougars, Baby!
Elder Cornholers Benefit?
What the hell is ECB?
European Central Bank, but the Electric Culo Braising made me laugh.
Raining out.
Can’t char-braise them Culos.
In Solid state Electronics, ECB stands for Emitter-Collector-Base on a transistor..............
Well, that's much better than Electric Culo Braising.
Extremely comical banter!
Tastes like chicken?............................
With Sriracha it does.
You could electric braise a culebra, but a culo you gonna need a bigger oven................
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