FedUpUSA

Europe: An Impending Disaster

I have long maintained that the EU Zone is an absolute train wreck – that their banks have less transparency and more leverage than ours, and have recognized less of their total losses.

As such they are literally dancing with jugs of nitroglycerine.

Well, now Bloomberg pipes up with this:

Dec. 17 (Bloomberg) — European Central Bank officials are moving closer to forcing banks to provide more information about the collateral they give the ECB in return for loans.

What? 

You mean the ECB doesn’t have full information about the paper they took in as collateral for loans?  What could they possibly want to know?

Under the terms of the collateral consultation, officials want banks to provide information about individual loans such as the value of the property backing a mortgage, details on cash flow and whether the borrower is in arrears, the people said.

WHAT?!

You have to be kidding me.  The ECB is holding paper as collateral where they don’t even know if the borrower is making the payments – that is, whether THE LOAN HAS DEFAULTED OR NOT?

The ECB has already tightened the rules for asset-backed securities it accepts as the central bank moves toward unwinding its emergency liquidity measures. The ECB said Nov. 20 it wants to ensure “high credit standards” are met and aims to restore “the proper functioning of the ABS market.”

Like hell.

I warned you all several times about this crap.  Now it’s leaking into the mainstream media…… which means that beyond the walls of the ECB it is now common knowledge.

How long before you see this?

PS: There’s more where this Ticker came from – this one is a tease for tomorrow….. To those who said the Euro Zone would be ok, I have only one phrase for you: “I told you so!”  

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