Tuesday, Sep 30, 2008

Euro in serious trouble

The Telegraph: Banking crash hits Europe as ECB loses traction

Mr Redeker said the latest alarming twist is a move by banks to deposit €28bn in funds at the European Central Bank in a panic flight to safety. This has jammed the mechanism used by the authorities to shore up the financial system in a crisis. "The ECB is no longer able to inject liquidity because the money is just coming back to them again. This is extremely serious. If monetary policy is no longer working, there is a risk that the whole system will blow up in days," he said.

Posted by sold 2 rent 1 @ 09:50 AM (177 views) Add Comment

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