Asset purchases by the ECB is making it difficult for Depositories to increase residual value (Regulatory Capital) as Reserve Assets created by the CB asset purchases create an associated deposit liability at the Depositories.... the numerator (A-L) remains unchanged...
lol then right on cue the unqualified moron platonist Art Degree people trying to run the thing have to resort to figurative language to attempt to explain what they think is going on:
“When you are building something that is supposed to withstand earthquakes, you should not opt for cheaper materials in the final stages of your construction work just because your budget is getting tighter.”
LOL nice metaphor moron! Right up there with "government is like a household!"... its like this Art Degree moron is writing a song lyric or something... maybe a poem... idk...
here you go same thing:
We should keep an eye on how this proceeds they could end up causing another big GFC-type crash over there before they are finished... shut down the whole credit system over there might have US system effects .... SCARY!!!!!!
European banks could soon argue they’re too financially fragile to follow strict regulations being set in Brussels https://t.co/ayGuaquT8I— Bloomberg (@business) November 12, 2019