Looks like the banks are stocking up.....

Generali

purch wrote: »

But important.

Lending against assets means that the addition should "not" be permanent, as the EUR will be repaid, and ultimately removed.

Buying assets means that it could be permanent, and therefore possibly inflationary at some stage.

My guess is that in 3 years time, the debt will simply be rolled over.

Don't forget, the extra money being printed and lent/given to the banks only becomes inflationary if it then gets lent out. What appears to be happening is that banks are using the money for either a carry trade (as in this case) or just bunging it in their reserves (UK banks).

The best outcome I can see from here is a benign stagnation. TBH I think this makes that a bit more likely. I still reckon banks are a massive shorting opportunity.