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Old 05-16-2012, 03:10 PM
Silken's Avatar
Silken Silken is offline
Join Date: Apr 2008
Posts: 8,362
Default more and more

and it just keeps getting better.,. or not

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Old 05-17-2012, 09:06 AM
Lorian's Avatar
Lorian Lorian is offline
Join Date: Mar 2011
Posts: 4,997

It's dangerous to make conclusions based on specific data instead of the whole of the picture.
The names of the banks aren't given. Their size/impact? Unknown.

And a comment on that Reuters article:
The ECB only conducts its refinancing operations with solvent banks. Banks which fail to meet strict ECB rules but are deemed solvent by the national central bank (NCB) concerned can nonetheless go to their NCB for emergency liquidity assistance (ELA).
Ehm, remember those two big Long Term Refinancing Operations of the ECB?
Here is the list of the open market operations:
Here is the "List of eligible marketable assets":
The used codes in that list are explained on:
There is only 1 conclusion to draw from this: despite all the talk about 'strict' requirements, the exact opposite happened, the ECB relaxed those conditions/rules for eligible market assets, as collateral for their LTRO loans, to never seen before levels.
So all in all, this is once again a story of completely contradicting talk and action.

So we should be wary to base general markets conclusions on reports like these. It's unsure in which direction. Just some weeks ago, rating agencies increased Greeces rating. This is also contradicting with this.
the void
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