ECB Loans Billions to European Banks

The European Central Bank (ecb) has loaned more than €500 billion to European banks. The loans constitute a second round of massive credit infusions intended to ease the eurozone debt crisis.

ecb President Mario Draghi encouraged banks to take the low-interest loans, saying there was “no stigma” or sign of weakness associated with them. More than 800 banks took the ecb up on the offer.

While the ecb’s massive injections of liquidity have improved Europe’s financial situation, some see the ecb loans as preparation for Greece exiting the eurozone.

Robert Halver, who is the head of Market Research at Baader Bank AG, said he believed the ecb knows Greece will leave in less than a year and that it is actually trying to shield Europe by “building firewalls with lots of liquidity.”

The euro crisis is still in critical condition. The European Union is holding a two-day summit at the end of the week to find ways to protect itself against its ongoing financial crisis. This issue will be determined by whether or not Germany acquiesces to offering up more money.

The Trumpet has forecast that whatever the EU’s solutions are, they will lead to a stronger, more centralized government with Germany at the helm. Continue to watch as European headlines prove this forecast true.