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Lack Of Trust Pummels Bank Lending In Europe

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The single largest requirement to keep all of the plates spinning to perpetuate the Ponzi scheme is for banks to keep lending each other money in the hope that the implicit collateral against the loans is sufficient to ensure debt repayment.

As we saw during the collapse of Lehman and Bear, a lack of liquidity is the final nail in the coffin. In many ways, markets don't care about solvency until the point where liquidity shortfalls expose insolvency.

As many here have said before, all that has happened so far is that a private sector problem has been transferred to the public sector at the behest of the public sector.

The next step is for public sector borrowing to be exposed as insolvent too.


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I read that the 650 Euro bailout had meant the banks now were lending to each other again?

For a week or two possibly.

In essence, that means that the ECB has to spend at least EUR 23.21 bn a day to perpetuate the myth.

The end game is approaching as the numbers required to fool some of the people some of the time are reaching cataclysmic proportions.

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