Banks fear indicator explodes
30/03/2012
Europe's banks were parked on Thursday about EUR 786 billion at the ECB. This shows dramatically that the ECB's injection of money for the financial houses has not led to restore confidence. The so-called fear-Indikaktor jumps back to near its all-time highs.
Even after the second injection of cash the banks at the ECB have hoarded so much cash in the night safe than ever before: the volume of the deposit facility by Thursday again jumped to 786 billion euros. This shows dramatically that the trust between the banks has not returned and the interbank market has virtually come to a standstill.
Back in January, when the deposit facility with the ECB at well 500 billion, was awarded the designated head of Deutsche Bank, Juergen Fitschen, a dramatic picture of the situation in financial markets. Fitschen compared the situation even with the turmoil after the crisis, the investment bank Lehman Brothers in 2008.
Fitschen, who is scheduled in May in conjunction with the investment banker Anshu Jain, the successor of Josef Ackermann, pointed out that the banks currently parked as much money as never before at the European Central Bank. "Between us we call the fear indicator," said Fitschen. "This fear indicator is higher today than in 2008."
This show, "Something is not right That trust is gone.." Particularly in view of the situation in Greece, Fitschen was worried. The price for debt reduction, is that the country's economy shrink by seven to eight percent. "This is not a state, a country can survive if this continues, then there is a disaster. That means:. Before using, Greece will probably leave the euro area," said Fitschen.
30/03/2012
Europe's banks were parked on Thursday about EUR 786 billion at the ECB. This shows dramatically that the ECB's injection of money for the financial houses has not led to restore confidence. The so-called fear-Indikaktor jumps back to near its all-time highs.
Even after the second injection of cash the banks at the ECB have hoarded so much cash in the night safe than ever before: the volume of the deposit facility by Thursday again jumped to 786 billion euros. This shows dramatically that the trust between the banks has not returned and the interbank market has virtually come to a standstill.
Back in January, when the deposit facility with the ECB at well 500 billion, was awarded the designated head of Deutsche Bank, Juergen Fitschen, a dramatic picture of the situation in financial markets. Fitschen compared the situation even with the turmoil after the crisis, the investment bank Lehman Brothers in 2008.
Fitschen, who is scheduled in May in conjunction with the investment banker Anshu Jain, the successor of Josef Ackermann, pointed out that the banks currently parked as much money as never before at the European Central Bank. "Between us we call the fear indicator," said Fitschen. "This fear indicator is higher today than in 2008."
This show, "Something is not right That trust is gone.." Particularly in view of the situation in Greece, Fitschen was worried. The price for debt reduction, is that the country's economy shrink by seven to eight percent. "This is not a state, a country can survive if this continues, then there is a disaster. That means:. Before using, Greece will probably leave the euro area," said Fitschen.