Secret Greek Fund Revealed
Posted by WARREN MOSLER on 22nd May 2012
Except it’s just about an ‘allowable entry’, not a ‘fund’.
The BOG, functionally a ‘branch’ of the ECB, just ‘accounts for’ negative member bank balances as loans.
Presumably on a ‘legally’ collateralized basis.
That’s what CB’s do in the normal course of business.
CB’s don’t ‘have funds’ in their currency of issue any more than the scorekeeper in a card game has any points.
Europe Shares Seen Higher; Secret Greek Fund Revealed
By Matthew West
May 22 (CNBC) — European shares were set to open higher on Tuesday as investors came to the conclusion that the markets were most likely over-sold and news emerged overnight of around 100 billion euros ($127 billion) of liquidity provided by the European Central Bank to the Greek central bank to prop up Greece’s financial system.
Posted in CBs, ECB, Greece | 19 Comments »