In the piece, we’re reminded that the ECB lent a record EUR 442 bln back in June 2010 for one year in its first LTRO.
My guess is that we will get a large take-up of 3-year funds at 1% which will give the markets a false sense of security.We could see a day or two of gains in risk markets before we’re confronted once again with reality.
Cheap money alone will not solve the sovereign debt and competitiveness issues that dog the euro zone…