ecb negative rates and ez banks

Negative interest rates or the environment surrounding them are there to make money available by banks for new lending together with the LTRO's ltro, $545 billion payable in four years.

With all this cash out and about the last place it will end up in is new advances in suffocating businesses trying to etch a misely profit from a destitute economy (one of 18).

12% unemployment average in the EZ means restricted capital trying to stabilize as consumption declines so the only hope for business is that the euro goes, and stays down.

Where then does this money filing out of the ECB to home and the freebe LTRO half trillion go?

If you were a bank would you prefer to lend your money to an enterprise that offers dicey security for a chancy tilt at a profit and maybe, maybe the repayment of the loan or would it be more reasonable to buy shares in the company and get a dividend or capital gain?

Bonds have a yield (at the moment)

Hats off to Gucci he's doing all that he can, or is game enough to do, but if banks don't want to risk lending in a deflationary environment where security decreases in value while the debt remains the best options are markets.

Forget about "sell in May and go away" when the CB boys get into the fray there are no rules.

I expect an equity and bond market run in Europe, the banks won't enter into the spirit of recovery. Not when there's money to be made elsewhere.

Also noticed that Japan's biggest pension fund has been asked to start investing in the stock market this year by Abe. Inflation is hitting food but real wages are dropping so you create the illusion of wealth.

The whole thing's an illusion actually.