As the FT published an article (available to subscribers only) that banks had increased and broken the previously held record for overnight cash held at the ECB, (something I had spoken of here) news was busy circulating that the LTRO’s might have something to do with the money which ended up being deposited in Frankfurt over the weekend.
Zerohedge and The Slog both have published detailed accounts of how the loans have ended up being distributed through the hands of Goldman Sachs European chief executive (and member of the Trilateral Commission) Mario Draghi. The intended destination is for the money to be distributed to ‘Club Med’ to prevent further ‘Eurozone contagion’.
I have sneaking suspicions that, should this be allowed to occur, the road will be extended and the can will be kicked once more. More horrifyingly, the debt incurred through this next leg will make the fall far worse, once we arrive at the only course of action left to take.