Europe's banks beached as ECB stimulus runs dry - Telegraph
So Europe's banks have done the carry trade - used LTRO cheap money to buy PIIGS bonds. And now they are facing capital losses - never mind what happens when there will be a haircut on these bonds.
They will need more LTRO money to buy the bonds to make things better - basically its a ponzi scheme.
So Europe's banks have done the carry trade - used LTRO cheap money to buy PIIGS bonds. And now they are facing capital losses - never mind what happens when there will be a haircut on these bonds.
They will need more LTRO money to buy the bonds to make things better - basically its a ponzi scheme.
