As with the sovereigns, the LTRO does not solve the longer term problems of the solvency or funding of the banks, which now remain heavily dependent on the largesse of the central banks. It is government sponsored Ponzi scheme where weak banks are supporting weak sovereigns who in turn are standing behind the banks – a process which can be best described as two drowning people clinging to each other for mutual support.Lifebelt required... or a miracle.
Monday, April 30, 2012
Lourdes Treatment and Resuscitation Option
Satyajit Das resorts to metaphors: