This is bad news. Not only are the banks unable to sell themselves, even with the ELG, the EU/ECB is telling them they can’t write nice notes to themselves “I promise to pay my management 8 billion euro” and swap them at the ECB for real money.
…is not only the shift on the balance sheet over the last year from private debt to public debt but also the shift from short public debt to long public debt. And 22B of the increase in long public debt last year is all warehoused with the ECB. Looks like Ireland has been excluded from the short market and has turned to the lender of last resort, those friendly loan sharks in the ECB.
Or put another way, Ireland just borrowed almost 15% of GNP from the ECB last year in order to keep paying bubble economy level public sector pay and welfare payments. And the final bill for Anglo, AIB and BOI has not even been presented yet.