Europe into credit freeze crisis and the subprime crisis similar

U.S. non-farm payrolls improved, the weak us economy recovery, but Europe is probably very bad, into credit freeze. January 6,, the European central bank, according to figures released on the day before the European central bank to bank deposits of 455.299 billion euros overnight, hit a record high. The European central bank to try their best to improve liquidity, even at the German central bank governors swap the tough, buy long-term bonds, a so-called quantitative loose monetary policy. But commercial Banks but an unappreciative, the bank is worried about debt crisis deepened, worry about enterprise profit prospects, worry about commercial financial institutions of faith, but for the precious after get liquidity of the capital on the shelf, there exists the European central bank for low interest rates. January 6, figures showed the conservative commercial Banks, after the January 3 commercial Banks overnight deposit for 453.181 billion euros, more than a week before the 452.034 billion euros of historic highs. The European central bank refinancing operation began in the end of last year, December 21,, the European central bank in the open market first launched three 10-year long-term refinancing operation (LongerTerm RefinancingOperation).baseball hats According to the European central bank announced on the day, the eurozone has 523 bank through 3 10-year LTRO operation get loans totaling 489 billion euros, eliminate the open market operation of the decrease of the 123 billion euros MRO operation, 110 billion euros 3 months period LTRO operation and 46 billion euros one-year LTRO operation, the European central bank to the open market operation, the European banking system, for a total of about 200 billion euros to provide new long-term liquidity. In the quantitative loose after, reflect European banking system of liquidity conditions Eurobor-OIS rates for rapid upward. The European central bank deposit on the rise, explain the European financial institutions had no confidence in the credit freeze state, they don't want to for bank, for the enterprise, provides money for bonds. Maybe the banking industry has been Greek bonds 50% of the plan was broken heart. Banking the choices, to a bank itself is rational, for the eurozone debt crisis, it is the worst outcome, into vicious cycle. The central bank released liquidity, commercial bank caches of liquidity, government and enterprise because without access to capital, balance sheet further deterioration, need more money to get out of debt crisis, the bank's confidence drops further, further credit freeze. This and the U.S. subprime mortgage crisis bubble just collapse are very alike, and the Japanese bubble collapse also very similar, the United States and Japan take way is will interest rates to zero, firmly implement quantitative looser monetary policy, force the bank's money. The euro zone has a new round of the debtor and the alarm, January 4,, Greece's prime minister warned that further cut income in the eurozone and gain Greece is the only way to financing international creditors, or the first three months of this year in the country's economy is likely to be trapped in a crash. In addition, the eurozone members of the euro currency Hungary flint on Wednesday plate fall to record lows. And the French government announced on January 5,, the New Year's first national debt auction sold 8 billion euros national debt, of which the 10-year Treasury yield going for 3.29%. This yields more than 3.18% of the last December. After an trading day, the German government of the 10-year Treasury auctions demand than in the previous auctions, but just 1.3 times multiple bids, lower than the average level last year. Look, the whole the euro zone,polarized sunglasses only Germany's economic and credit, but also by the trust of investors. The euro zone is expected to be followed a series of policy also, euro rates could further down, the European central bank to continue with quantitative looser monetary policy. In order to avoid the euro collapse, the European central bank eventually have to act as lender and the ultimate investors to purchase quantity does not poor Spanish, Italy and other bonds, in order to avoid the risk of default. So, the European central bank asset quality worse, therefore, the strength of the euro has become the past type, the performance of the euro may be weak, more than most people think.

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