5.9 C
New York
Friday, March 29, 2024

European Sovereign Risk Soars As Bank Contagion Spreads

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

The ECB’s “whatever it takes” ponzi strategy of keeping the dream alive in Europe’s financial system has finally been caught as rapid collapse in the banking system is contagiously spreading to peripheral sovereigns once again. Portugal risk spreads are up 120bps in the last 3 weeks and Spain and Italy are soaring over 35 and 50bps respectively as the almost self-dealing nature of banks buying “risk-free” EU bonds and repoing for cash via The ECB comes home to roost…

And now The ECB is cornered as any more NIRP will merely exacerbate the stress in the financial system and lead to a vicious circle in sovereign risk.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

Stay Connected

157,450FansLike
396,312FollowersFollow
2,280SubscribersSubscribe

Latest Articles

0
Would love your thoughts, please comment.x
()
x