16 December 2010 - ECB increases its capital
The European Central Bank (ECB) has decided to increase its subscribed capital by €5 billion, from €5.76 billion to €10.76 billion, with effect from 29 December 2010...
In order to smooth the transfer of capital to the ECB, the Governing Council decided that the euro area national central banks (NCBs) should pay their additional capital contributions of €3,489,575,000 in three equal annual instalments.
...maybe consumers should follow suit after all... risk management as they said...
8 comments:
A few billion seems like a tiny amount of money when it appears that most of the periphery are going to have to be bailed out and yet have no chance of repaying the debt.
Did anybody see the comment by Finlands 'ranking financial civil servant' that government were like parents who kept on giving lollies to their children and structural change was so overdue that the situation was becoming alarmingly unsustainable?
Few billions of Fiat money ...
Next move a devaluation of the Euro? well actually it is already the case, and Germany is benefiting from it ...
Are my comments being deleted?
No Comments have been deleted :-> there are so few lately...
I have not been much actif lately, the reason is that since 2009 there is no much to say since, so far, everything is artificially supported from all direction (Chinese Economy, US and Europe, etc...) a temporary solution (more liquidity support) for what was a long term issue (Debt)...
Obviously more you support a structurally ill economy, the biggest its readjustment be...
We are seeing slowly a scenario unfolding for Europe (the ECB is trying to prepare itself for it - if it ever survives).
2011 could be the year where the support breaks however, since 2012 holds very important election for most countries in Europe...the support could still be maintained if you don't want to see "extremist" in power...
i made the same comment 3 times and each time it dissappeared after i saw it was posted
Probably an ECB censorship :-)
@Housing Finland
Indeed very good analysis, 2012 is an election year therefore everything will be done to avoid problems such as an asset devaluation ...
The worst thing is that in some years, when we will say to our friends that we told them that the whole thing is not sustainable and that the bubble will burst ... they will say that we never told them that ... people tend to have very short memories ...
Enjoy Christmas and the snow ...
In Finland there is one thing which may help to hold high prices. Most of kerostalo were built in 1970-1980 and these kind of buildings are not going last forever. So, sooner or later they become too bad and there will be a big need for new kerostalo. So, at least in Helsinki there are two ways to hold high prices
1. Do not built enough
2. Do not built good
Those '70-'80's appartments sure are ugly as hell. Slabs of concrete without any character does not look very appealing to me either.
I do like the older, more traditional building style though. Houses from 1900-1960 seem to have a much higher build quality and if once been renovated (pipes), these can last for another 100 years.
Depending on the location, a traditional finnish appartment would in my eyes make a much safer investment than a brand new, way more expensive (risky?) appartment.
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