ECB (European Central Bank) President Mario Draghi made it clear with his most recent monetary banking announcements that he is perfectly willing to shovel the sovereign debt trash around the financial system, but he just doesn’t want the ECB to gobble up heaps of the smelly debt.
On the same day that Draghi lowered the key benchmark interest rate by -0.25% to 1.00%, he also reduced the lending credit rating threshold for acceptable banking collateral to “single-A” and offered banks endless three-year loans with . But wait…there’s more! In typical infomercial fashion, Draghi had an additional stimulative gift offering – he halved the reserve requirement ratios for European banks.
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