Economy's Wile E Coyote Moment

Want a Trillion, or Two, Anyone?

The EU/Eurozone summitry, including the flood of media "soundbites," is actually being made totally irrelevant by the banks' own steps to secure the money they urgently need right now, rather than wait for some summit decision to come at some time: as leaked by London's {Financial Times}, particularly the bigger European banks plan to borrow EU1 trillion from the ECB's special window at the end of February.



And the word is already out among bankers that this will naturally not be the end of borrowing, that more money will be required soon. 


None of that money will reach the real economy, of course: already, the EU500 billion special loan which the ECB granted the banks in December, is being parked in the overnight accounts of the ECB, to be speculated with during the day, only to be parked away again the next night. 



And that is being done at constantly rising volumes. At the end of last week, it was already EU528 billion.


This freshly-printed money is already in the hands of the bankers, whereas the money promised by the IMF, EFSF, and ESM, does not even exist yet, except on the paper on which the summiteers wrote down their commitments. 


Therefore: Why only borrow EU1 trillion at the ECB, why not EU2 or EU3?


How long will Wile E. Coyote stay suspended in mid-air before the reality of gravity exerts its existence? How hot must the air in this bloated economy stay before the bubble pops? I trust the crooks who never skipped a beat after their bailout, don't you?