The ECB has lent even more than expected, 489 billion Euros, in form of very cheap 3 year loans (around 1%) to 523 different European banks. This will allow such banks to lend at presumably a significantly higher rate and/or buy debt securities for a compatible period and lock in the favorable spread. This is similar in methodology to what has been ongoing with the US Fed to help US banks beef up their profit/equity positions. Read: -“Secret Loans to Big Banks – $13 Billion Profits” - diplomaticallyincorrect.org/films/blog_post/secret-loans-to-big-banks-13-billion-in-profits-by-ambassador-mo/42106 New Liquidity, Contrary to Initial Opinions, is Being Deployed to Buy Euro Sovereign Debt: What is different than perhaps expected only a few days earlier, (as expressed in following article based upon story from the International Financing Review -Read: -“European Banks Not Buying EU Debt” - diplomaticallyincorrect.org/films/blog_post/european-banks-not-buying-eu-debt-by-ambassador-mo/42987), is how much of funding in fact has been committed to purchasing Eurozone sovereign debt. Contrary to initial expectations, the ECB lent money does appear to have been deployed to buy Spanish sovereign bonds in the latest auction by the Government. It has stemmed panic for the moment in the EU sovereign debt markets and sparked a rally in the Euro, debt and equity markets. Raining Cash Lifting Clouds of Gloom & Doom: Personally though I’m not convinced that this is the remedy, but it is relief for a market seeking some good news and at least a temporary respite as longer term solutions are worked out, hopefully. Raining cash into troubled markets serves to lift dark clouds of gloom and doom. It is also indicative of the new ECB's head reversal of strategy from his predecessor - liquidity and perhaps inflation are preferable over falling asset prices, recession and stunted EU growth. By Ambassador Muhamed Sacirbey Facebook – Become a Fan at “Diplomatically Incorrect”

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 International Financial Crisis Channel - diplomaticallyincorrect.org/c/international-financial-crisis