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ECB lends record €442 billion to commercial banks


Ramon21

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Aug 1, 2008
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The European Central Bank said today that it lent a record €442.24 billion at 1 per cent in one-year funds to commercial banks.

The previous record for the central bank’s refinancing operations was €348.6 billion in two-week funds on December 18, 2007 as crisis-hit commercial banks scrambled to bolster their balance sheets during the crunch year-end period.

Analysts at UniCredit markets expected the ECB operation to result in lower rates paid by commercial banks for longer-term borrowing in general and to reduce demand for short-term funds as well.

If that is the outcome, then interest rates overall would be expected to remain low, a key issue as the eurozone grapples with what is likely to be slow recovery from the worst global recession in more than 60 years.
 

Middleaged

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Jul 30, 2008
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The European Central Bank said today that it lent a record €442.24 billion at 1 per cent in one-year funds to commercial banks.

The previous record for the central bank’s refinancing operations was €348.6 billion in two-week funds on December 18, 2007 as crisis-hit commercial banks scrambled to bolster their balance sheets during the crunch year-end period.

Analysts at UniCredit markets expected the ECB operation to result in lower rates paid by commercial banks for longer-term borrowing in general and to reduce demand for short-term funds as well.

If that is the outcome, then interest rates overall would be expected to remain low, a key issue as the eurozone grapples with what is likely to be slow recovery from the worst global recession in more than 60 years.
I wonder if this will filter into fixed term interest rates?

My guess it won't.
 

He3

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Where does the ECB get that money?
 

Ramon21

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Where does the ECB get that money?
The ecb is the central bank of the euro-zone countries, so I guess they get the money like all other central banks.
 

Kensington

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He3,

It creates it out of thin air. It could create as much at it wanted. The ECB can create money, yet the Irish (or any) Government cannot.
 
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He3

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Thanks K.

There must be an opportunity to run a Fás course on that? They are good at making money vanish, so this looks like a natural extension.
 

Kensington

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Locke,

It is preventing deflation. The money has to be created.
 

Jock_the_Waster

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May 19, 2009
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hmm almost half a Trillion

anyone have a list of the banks involved? amounts?

I would love to know how much was spent purchasing governments bonds....
 

Hobo Sapiens

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Jul 31, 2007
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The ecb is the central bank of the euro-zone countries, so I guess they get the money like all other central banks.
Riiight... what kind of half-assed answer is that? Just vote yes to lisbon and everything will be ok, is that it? Let's ignore the economic fallout that's coming down the line until the referendum? I only hope that most people are not fooled by the subterfuge.
 

Ramon21

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Riiight... what kind of half-assed answer is that? Just vote yes to lisbon and everything will be ok, is that it? Let's ignore the economic fallout that's coming down the line until the referendum? I only hope that most people are not fooled by the subterfuge.
The irish have seen what was promised by the anti-eu nutjobs like yourself.
And what did they get? nothing only more problems and jobs lost.
The irish won't be fooled again!
 

Hobo Sapiens

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Jul 31, 2007
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Thanks K.

There must be an opportunity to run a Fás course on that? They are good at making money vanish, so this looks like a natural extension.
Wow, creating money out of thin air - how do I get in on that scam?
 

He3

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First you change your name to something ending in Central Bank.

The rest is history.
 
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Hobo Sapiens

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Jul 31, 2007
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The irish have seen what was promised by the anti-eu nutjobs like yourself.
And what did they get? nothing only more problems and jobs lost.
The irish won't be fooled again!
Is there any point trying to debate against such childish comments? Probably not, but let's try:

How has the result of the referendum led to job losses?
 
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