27 December 2011

EUROZONE : Nervous Banks Choose ECB As Piggybank; New Deposit Record Set.


     The ECB set a troubling new deposit record for cash deposits...412bn euros/ $539bn...as nervous banks seem to prefer parking their money with the ECB...than lending it to other banks.
     The new total beat the June 2010 record of E384bn.
     Many banks seemingly prefer to keep their cash with the ECB...though it only pays a miserly 0.25% interest rate...instead of getting higher returns by buying troubled southern European sovereign debt.
     Spain's three-year sovereign debt goes for 3.6%...while Italy's yields 5.7%.