Socio-Economics History Blog

Socio-Economics & History Commentary

Revealed: ECB Secretly Hands Cash to Select Corporations

Carroll_Quigley_Tragedy_n_Hope2

  • Revealed: ECB Secretly Hands Cash to Select Corporations
    by , http://wolfstreet.com/  
    Expanding its Program of Financial Darwinism
    In June, the ECB began buying the bonds of some of the most powerful companies in Europe as well as the European subsidiaries of foreign multinationals. This pushed the average yield on euro investment-grade corporate debt to 0.65%. Large quantities of highly rated corporate debt with shorter maturities are trading at negative yields, where brainwashed investors engage in the absurdity of paying for the privilege of lending money to corporations. By August 12, the ECB had handed out over €16 billion in freshly printed money in exchange for corporate bonds.


    Throughout, the public was given to understand that the ECB was buying already-issued bonds trading in secondary markets. But the public has been fooled.

    Now it has been revealed by The Wall Street Journal that the ECB has also secretly been buying bonds directly from companies, thus handing them directly its freshly printed money.

    It has been doing so via “private placements.” These debt sales are not open to the broader market. There’s no need for a prospectus. Only a small number of institutional investors participate. It allows companies to raise cash quickly, without jumping through the normal hoops. Private placements are not unusual. What’s new is that the ECB used them to buy bonds.

    There have been two of these secretive private placements. And Morgan Stanley arranged them. The Wall Street Journaldetermined this by analyzing data from Dealogic and national central banks.

    read more.

Louis_McFadden_1929_Stock_Market_Crash_International_Bankers

Charles_Lindberg_on_FedRes

end

August 24, 2016 - Posted by | Economics | , , , , , , , , , ,

Sorry, the comment form is closed at this time.

%d bloggers like this: