The European Central Bank has agreed to make $638 billion in 3 year loans to 523 different banks.  Never before (not even during the last financial crisis) has the ECB loaned so much cheap money to European banks at onThis move by the ECB made headlines all over the globe.  CNBC is calling them “ultra-long and ultra-cheap loans“.European authorities are hoping that European banks will use this money to make loans to businesses and to buy up the debt of troubled European governments. But wheres this money come from--The Fed of course and printed from fresh air at cheap interest rates.

But as we have seen in the United States, bailout money does not always get spent the way that the authorities intend for it to be spent.

The banks will do the same as those in the USA ---just sit on the money.  That is what happened with a lot of bailout money in the United States during the last sub prime financial crisis and the ratings agencies lied that it was a computer glitch that caused them to raise ratings on properties which is utter bull shit . European authorities say that European banks will take this super cheap money and lend it to European governments at much higher interest rates??? but just wait and see and at what interest rate will they pay back is interesting?. Now Global financial markets will worry with this move by the ECB.  European bond yields actually rose and the euro just kept on tumbling down. The Euro Central Bank has already bought up Bonds worth around $274 billion??? but what if these bonds become toxic in the running.

Now if the ECB has problems then the world has problems and already some Banks have falsified their information status to secure loans. eg Dexia was the first major European bank that had to be bailed out, and the cost of that bailout is going to be over $100 billion dollars. Again its because they lied about their status so in a short space of time they have gone to zero== others will follow them for sure. Like MF Global the Banks are falsifying their accounts or not divulging the nature of their financial status and it is the common people who have mortgages that suffer not the Banks as they know how to hide $$$$. In Greece for instance the run on deposits held by the private sector has risen to 40% making Banks look useless but wouldn't you withdraw your funds if the Banking system is failing & the scare of MF Global who used customer funds to try to stay afloat. Now Italy has stopped transactions over 1000 Euros to stop the rush to get money out. But in the UK they are saying recession looms ever higher. In NZ we are saying nothing as its work as usual & our main exports are destined to Asia rather than the EU but still our Banking system is not owned by NZ and we borrow every week to stay afloat.

This year 2012 disasters will come in the form of a volcano & countries will fall.

With USA in debt & Obama doing nothing about the Banking situation USA Bankers will continue to reap big profits & bonuses while 90% of the population will continue to suffer.