Quantitative Easing 3

Courtesy of www.newsdag.com

QE3 has already begun in Europe.

Click 'New York Post' to read.

European Central Bank has started to tap the Fed for very cheap money.
In fact on 21st December, ECB has put some of this money to work and lent out 489 billion euros to 523 Europe's weakest, most overleveraged and most desperate banks for a full three years.

Jonathon Trugman,"Essentially, we just bailed out Europe's banking system."

Brittany Stepniak,"Although Quantitative Easing technically involves the process of printing money, it's essentially just printing paper that looks and acts like money."

Fed is using these papers in his 'Dollar swaps' with ECB

For the 523 banks, all their problems vaporized. They can now borrow money from ECB at the current prime interest rate of 1%, they can use the money to buy say Italian bonds that pay around 5%. They can then deposit these bonds at ECB as security and borrow more money at 1%. Their next quarterly result is sure to improve provided Italy and other problem nations do not default on their debts obligation that could plunge the eurozone into further financial choas.

Courtesy of www.re-define.org



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