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Mariano Rajoy urges the ECB to do more to stimulate lending in Spain. "I would like the ECB to...

Mariano Rajoy urges the ECB to do more to stimulate lending in Spain. "I would like the ECB to act like other central banks," Rajoy says, citing the BOE's Funding for Lending scheme. The central bank should give "cheap loans to financial entities so that these financial entities can lend at cheaper rates to small and medium-sized companies." This brings to mind a fairly recent episode during which the central bank was accused of applying a haircut 11 times too small to collateral pledged by Spanish banks. From Die Welt at the time: "The bonds pledged as security meet the central bank's requirements only in part."
Comments (4)
  • Mephistopeles said to the Emperor, you have all this gold underground, it just hasn't been mined yet. So you CAN create money.

     

    Faust agreed and Mephistopeles had his magicians create a prototype note that would duplicate money.

     

    While it created a temporary boom, soon after, a great inflation kicked in and ruined the entire economy.

     

    The road to hell is paved with good intentions.
    15 Jun 2013, 02:22 PM Reply Like
  • Faustian bargains look like a (deceptively) good deal to those who argue that in the long run we're all dead.
    15 Jun 2013, 03:50 PM Reply Like
  • Good point.. but our kids, our legacy lives on ..so does humanity.

     

    A generation of a boom for a dark age? Many would take that bargain I'm sure.
    15 Jun 2013, 05:13 PM Reply Like
  • Yes, the BOE does things like that but the BOE is run like the FED - just money printing entities. The ECB would be the same but the Germans and a few other nations don't like that type of nonsense.
    15 Jun 2013, 05:06 PM Reply Like
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