What's OLD is NEW Again......What's OLD....WAS ILLEGAL.....but because it's being done by the "government"....it's LEGAL?????THIS STINKS.......Article: "Free lunch for European Banks" Hmmmmmmm....JUST LIKE THE US Banks, since 2008!QUOTE: thus......European lenders are being encouraged by policy makers to use the ECB cash to purchase domestic sovereign debt, pushing down borrowing costs for governments and reducing the risk that one or more countries in the region default.An Italian bank could borrow 1 billion euros from the ECB at 1 percent and use the proceeds to purchase three-year Italian bonds yielding about 3.60 percent. That so-called carry trade could boost income by 26 million euros a year.Sooooooooo.....................Michael Milkin, the Junk Bond King in the US in the late 1980's...... he MADE the Junk Bond market.And, then went to jail, for what? for "requiring that companies he did Junk bonds for......would be reuiqred to BUY Junk Bonds for other companies he later did junk bonds for..."
What? Re-read the quote from the above article. ......And, in THIS CASE, they will also 'make a positive spread" on the deal.GOOD for the BANKSBAD for the Tax-Payers....just like in the United States.BTW.......the European Central Bank is like the US Federal Reserve. So, when they make loans to the european banks......from what account do they write the check? AHA...that's right..... there is NO balance in the account.....so they are just priting money.DUH...... exactly what the US Fed has been doing......buying up US Government bonds and saving banks with bailouts over the past 4 years.NOTHING HAS CHANGED! NOTHING HAS BEEN FIXED! UGH!We're all DOOOOOOOOMMMMED !!!TICK TOCK,YFIC,RandyPS...... BTW, This is NOT working anyway.The article was written in Feb, 2012.At the time, the European Bank, the BEBANKS index....was at 88. Now it is at 70...DOWN 18, or 20%...in just 3 months!!Question: Will 2012 turn out (for the European Banks) like the period of 2008 was for the US Banks? And if the European markets get HIT HARD......SO WILL THE US MARKETS!! Just like hte past 2 years....when European markets get sick......so did the US markets!!!ALL THE DOMINOES ARE ALL LINED UP....... hey, so let's get ON WITH IT THEN!! lol....Tick Tock.....Lord.... !!