“The ECB’s two refinancing operations made new cash available to Europe’s banks to help them refinance maturing debt and push down government bond yields as they invested in the securities. The LTROs, which mature in three years, have tightened the links between banks and their sovereigns and leave unanswered the question of how borrowers will repay the loans at maturity.  About 50 percent of those expecting a new LTRO predict it will take place in 2013 or 2014, before the current LTROs run out, while 33 percent say it will come before year-end, Fitch said.”  [Each ‘solution’ sows the seeds of the next crisis.]

http://www.bloomberg.com/news/2012-08-09/lenders-in-europe-will-need-more-central-bank-cash-fitch-says.html

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