Just what Europe needs… more QE… this is the real problem – not only is demand for credit weak in the periphery as the balance sheet recession rolls on, but “real” borrowing costs are at near-record highs… Despite Draghi’s earlier comments and promises, cramming SME loans down the throats of borrowers at suppressed risks will do nothing but kill bank balance sheets (most critically the ECB’s)…
These are “market” rates… i.e. what real risk is being priced at away from the hand of Draghi…