Deposits in Europe exploded upward in March, rising by a whopping €290 billion (1.7%). But don’t be tempted to annualize that. This surge coincides with a net issuance of €245 billion in the ECB’s occasional TLTRO program. Every time the ECB has done a slug of LTRO or TLTRO, this happens. Then most of it is reversed in a few months as the useless loans for which there is no demand, are quickly repaid.
TLTRO is Nitro for European Banks
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.