Europe's new plan: to give more free money to banks

[countryfree]

https://www.reuters.com/article/us-ecb-policy/ecb-pushes-out-rate-hike-offers-cheap-cash-to-banks-idUSKCN1QO0MH

The European Union is sinking, with the UK's leaving this month, but its central bank has a new plan to save it: print more money, and give it away to all its failing banks. I think that if the ECB was a doctor, it would get the most dangerous virus there is, and spread it to the entire population.

This is the kind of news which makes you happy to own BTC...

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[LeGaulois]

The TLTROs were supposed to expire soon, it would have been a shock to the banks if ECB didn't postpone.

Since several years now their profitability continued to decline. EU is already on its "last reserve" and the last hope is to print more money for more debt, and twist the policy from time to time but again, this only postpones the problem.

People think the EU economy is doing fine, but under the rocks it's ugly.

[Indamuck]

Governments privatize the profits and socialize the losses.  We already saw the corrupt that happened in the United States.  Banks and auto companies got bailed out while people got foreclosed out of their houses.  You can't have it both ways, either have a completely free market where any business that fails goes extinct or socialize everything and actually help your citizens.

[NeuroticFish]

People think the EU world's economy is doing fine, but under the rocks it's ugly.

There! I've fixed it for you.

Almost entire world's economy is in a bad shape. The previous financial crash was poorly fixed and that's visible if you look "under the rocks".
A new crisis is approaching and it could be bad because of the poor "fix" and also the complicated/bad relations (US-China, problems inside EU, name it).
The banks got used to do nothing and get the free money. So in order to try to postpone the crash a little, yeah, they'll print more paper.

[dothebeats]

People think the EU world's economy is doing fine, but under the rocks it's ugly.

There! I've fixed it for you.

Almost entire world's economy is in a bad shape. The previous financial crash was poorly fixed and that's visible if you look "under the rocks".
A new crisis is approaching and it could be bad because of the poor "fix" and also the complicated/bad relations (US-China, problems inside EU, name it).
The banks got used to do nothing and get the free money. So in order to try to postpone the crash a little, yeah, they'll print more paper.

The solution they have found a decade ago is like patching up the broken parts with a duct tape (well, duct tape fixes everything) and just hope for the best instead of replacing the worn-out, non-functional parts with something new to help the gears turning even more efficiently. Printing even more money won't fix a thing but only delays the inevitable, which is another crash looming and waiting to grab the world's economy and turning into yet another shitstorm.

They literally are just making the next crashes even worse than before.

[gantez]

The euro crashed yesterday because of the fear of debt across the EU banks and caused some traders big lose. However, I think the euro is beginning to recover fast because of the ECB decision to print more money to service bank debts. I think that is a right step from draghi led ecb. I do believe that it will further boost the strength of the euro from next week to bull.

[Crypdon]

I don't actually believe that the UK will leave the EU as the deal has not formally been approved by it's own government and the modified version hasn't been approved by the EU. Hard to believe until it actually happens

[kryptqnick]

The TLTROs were supposed to expire soon, it would have been a shock to the banks if ECB didn't postpone.

Since several years now their profitability continued to decline. EU is already on its "last reserve" and the last hope is to print more money for more debt, and twist the policy from time to time but again, this only postpones the problem.

People think the EU economy is doing fine, but under the rocks it's ugly.

But printing more money is too risky, isn't it? The EU is putting a lot of effort in making sure they control the price of euro and the rate of inflation. They evaluate how much basic products cost and adjust the amount of money so that there is very stable inflation rate. Printing more money than planned can easily lead to euro's rapid devalvation and that, in turn, to international economic crisis in Europe. I guess it's time to start saying goodbye to controlled fiat and embracing the money that is limited in supply 'from the inside' with all of its ups and downs.

[ASHLIUSZ]

The TLTROs were supposed to expire soon, it would have been a shock to the banks if ECB didn't postpone.

Since several years now their profitability continued to decline. EU is already on its "last reserve" and the last hope is to print more money for more debt, and twist the policy from time to time but again, this only postpones the problem.

People think the EU economy is doing fine, but under the rocks it's ugly.

But printing more money is too risky, isn't it? The EU is putting a lot of effort in making sure they control the price of euro and the rate of inflation. They evaluate how much basic products cost and adjust the amount of money so that there is very stable inflation rate. Printing more money than planned can easily lead to euro's rapid devalvation and that, in turn, to international economic crisis in Europe. I guess it's time to start saying goodbye to controlled fiat and embracing the money that is limited in supply 'from the inside' with all of its ups and downs.

As mentioned printing more money will surely lead to inflation of the currency. At present EUROPEAN UNION is very strong in its economy, but we're not going to rally strong in the market anymore. Free money to banks weren't the right solution to keep the economy under control.

[Mpamaegbu]

A new crisis is approaching and it could be bad because of the poor "fix" and also the complicated/bad relations (US-China, problems inside EU, name it).

I do think that globally the books have been messed up a lot. I do quite agree with you that another global financial meltdown is brewing already with all the tug-of-wars, Brexit no deal, N.Korea-US and China imbroglio. It's going to be a tough ride soon.

March will match all these.

[BitcoinFani]

It was already clear that the European Union would sink.. Britain was wise to leave the European Union.. Germany is close to the separation of countries such as Netherlands and Sweden.. why a country with a good economy should try to feed others. illogical..

[magneto]

The European Union is sinking, with the UK's leaving this month, but its central bank has a new plan to save it: print more money, and give it away to all its failing banks. I think that if the ECB was a doctor, it would get the most dangerous virus there is, and spread it to the entire population.

This is the kind of news which makes you happy to own BTC...
Report to moderator 

Sounds familiar to how banks are bailed out when there are any type of financial crisis that seems imminent?

This seems to be exactly the same thing that's happening here.

Certain banks become too big to fail, and governments essentially simply inject money to keep them running. That in itself imo makes banks more comfortable making higher risk moves, and artificially stimulates the economy at the cost of individuals. This isn't just something that happens in the EU.

After all, printing more money isn't something that comes free. The invisible tax of inflation will ultimately be passed onto households, and not to mention taxes.

[mu_enrico]

The European Central Bank changed tack on its tightening plan on Thursday, pushing out the timing of its first post-crisis rate hike until 2020 at the earliest and offering banks a new round of cheap loans to help revive the euro zone economy.

Source

I cannot believe this madness since it is clear that the market needs to reset. I'm afraid that the longer the waiting time for the interest rate rise, the economic turmoil would be more severe.

[fauzan Ichsan]

The European Central Bank changed tack on its tightening plan on Thursday, pushing out the timing of its first post-crisis rate hike until 2020 at the earliest and offering banks a new round of cheap loans to help revive the euro zone economy.

Source

I cannot believe this madness since it is clear that the market needs to reset. I'm afraid that the longer the waiting time for the interest rate rise, the economic turmoil would be more severe.

but to turn the wheels of the economy, it must be from below, by giving low interest rates to small businesses, of course they will help them to develop their businesses, just as they do in my country

[cellard]

The European Union is sinking, with the UK's leaving this month, but its central bank has a new plan to save it: print more money, and give it away to all its failing banks. I think that if the ECB was a doctor, it would get the most dangerous virus there is, and spread it to the entire population.

This is the kind of news which makes you happy to own BTC...
Report to moderator 

Sounds familiar to how banks are bailed out when there are any type of financial crisis that seems imminent?

This seems to be exactly the same thing that's happening here.

Certain banks become too big to fail, and governments essentially simply inject money to keep them running. That in itself imo makes banks more comfortable making higher risk moves, and artificially stimulates the economy at the cost of individuals. This isn't just something that happens in the EU.

After all, printing more money isn't something that comes free. The invisible tax of inflation will ultimately be passed onto households, and not to mention taxes.

The irony is that once a bank becomes too big to fail it's already too late, as it becomes a burden for the underlying system's currency in the form of perpetual QE, so as more and more banks reach "too big to fail status" the QE rounds start stacking in order to save them. It becomes a futile action of kicking can down the road brewing massive backlashes, crashes, and worst case scenario systemic risk.

If the system was fair banks would simply fail and go out of business. The pain would suck but it would be temporary, systemic risk wouldn't be an issue. But once again politicians only think for whatever next 4 years they plan to be on office, when economics need longer timeframes, but they think in form of potential voters which goes against very long term policies.

Thanks to satoshi we have now Bitcoin after 2008 to protect from this problem, just hold some bitcoin at all times in order to hedge against that.

[Lizzylove1]

This is the practice almost everywhere in the world, by giving the public treasuries to failing private institutions in the name of bail out, especially the banks. The implication of this is that: these same economic gangsters will in turn steal the bail out fund and come asking for more, leading to more inflation.  Bank was conceived in Inequity and born in Sin, according to a former banker. Sadly, this will continue because these cabals control the government and not some politicians, if you don't play along, your government get grounded and you are frustrated out of the office. Check out this book Conspiracy Of The Rich by Robert T. Kiyosaki.

[davis196]

https://www.reuters.com/article/us-ecb-policy/ecb-pushes-out-rate-hike-offers-cheap-cash-to-banks-idUSKCN1QO0MH

The European Union is sinking, with the UK's leaving this month, but its central bank has a new plan to save it: print more money, and give it away to all its failing banks. I think that if the ECB was a doctor, it would get the most dangerous virus there is, and spread it to the entire population.

This is the kind of news which makes you happy to own BTC...

This "new" plan isn't new. The European central banks has been going this for years,and they won't stop the priniting machine,because the bank system will collapse.
I don't think that the EU is sinking due to Brexit or due to any other factor.The European Union still has some strong foundations,like the open market.

[coinplus]

Like that worked out so well before. I do not understand why banks needs to be the governments money access system.
I get the whole idea that banks give out loans and buy shares and sell share basically keeping the economy alive a bit and governments give money to banks so banks can keep doing it forever and economy can stay alive.

Moreover, banks do not do this for free, they are raking up billions of dollars in profit and what they can't afford should be only helped via government not via banks so when someone takes out a loan to build a bridge for example and fail to pay the loan to bank than government should not pay it to the bank, the bridge should be loaned from the government anyway.

It is a weird thing that banks are the door to economy in every nation, they should not have this much power and monopoly over a countries finances.

[mu_enrico]

but to turn the wheels of the economy, it must be from below, by giving low interest rates to small businesses

Your statement is true if cheap money is used by businesses for productive activities. However, in reality, people use that money to inflate the stock price, properties, basically for speculative activities. This is why we see the boom and bust cycle because people are greedy and want the easy way to earn money.

[Febo]

It was already clear that the European Union would sink.. Britain was wise to leave the European Union.. Germany is close to the separation of countries such as Netherlands and Sweden.. why a country with a good economy should try to feed others. illogical..

Can you be more precise please. Which country have good economy and which country need food?

For me personally if my neighbor or any one need food I would give to him. You would not? You want to have your kids live in a country with starving people walking around?

Let me tell you the news. EU will never go away. EU will stay 3rd economic powerhouse behind India and China  until the end of this century and further. No matter how much hate there will be form people like you.