Categories
Uncategorized

NIRP Collateral Damage: ECB Can’t Get No Satisfaction; Marking to Market When BB’s go from T+800 to No Bid

screen-shot-2016-10-17-at-1-19-40-am
Euro Designer Prof. Otmar Issing issues warning

[Editor’s Note: Is one of the unintended consequences of NIRP that the ECB is about to run out of eligible collateral to support their global carpet remnant purchases of junk bonds and other detritus? This is what happens when the system is flooded with too much liquidity.  Even central banks can drown. ]

From The Telegraph:  Euro ‘house of cards’ to collapse, warns ECB prophet

The European Central Bank is becoming dangerously over-extended and the whole euro project is unworkable in its current form, the founding architect of the monetary union has warned.

 “One day, the house of cards will collapse,” said Professor Otmar Issing, the ECB’s first chief economist and a towering figure in the construction of the single currency.

http://www.telegraph.co.uk/business/2016/10/16/euro-house-of-cards-to-collapse-warns-ecb-prophet/

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.