This is pretty amazing what is going on. I got to give these guys credit for thinking up new ways to prop up the Euro banks. The repo market has frozen up because the banks no longer have any they can use as collateral.
So now the ECB steps in and offers 3 yr loans for 1% and will accept PIIGS debt as collateral. So the banks can make 4% on the difference and they will continue to buy as much PIIG debt as they can get there hands on. Everybody wins!
The first country to default is going to bring the whole house of cards down I fear.
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