This notion may be the precondition in the realization of European banking institutions

In dec 22, 2011, the European middle standard bank for your earliest time more than a time period of three many years long-term refinancing operations ( hereinafter referred to as LTRO ), household to 523commercial banking institutions using the cartier ballon bleu stainless steel with diamonds amount of 1% in the complete 489000000000 euros in low-interest loans, among the critical aim is to obtain a low-interest financial loans for European banking institutions to purchase yields much better sovereign credit debt ( arbitrage transaction), to ease the sovereign credit debt crisis.

This notion may be the precondition in the realization of European banking institutions to purchase sovereign credit debt motivation. Unfortunately, the Italy Treasury yields not simply because of the operation and drop. In dec 23rd, Italy 2year relationship generate of 5.145%, and also the price of borrowing is 1%, during the encounter of this type of a large room for arbitrage, European banking institutions do not act. about the exact same morning in Italy 10year relationship generate of 6.981%, but strike a 1 week high, once more to much more than 7% in the unsustainable development. In fact, in 2009June, European banking institutions have entry for the European middle Bank442000000000 Euro1 yr loan, almost half into greater yielding sovereign debt, primarily in Greece and Spain, but in return it is large losses. What be noticeable cartier ballon bleu pink gold prior to the eyes, and European banking institutions are at present during the procedure to leverage, it is tough to envision which they would have risked default chance to buy big quantities of poor credit debt in debt.

In dec 4, 2011, Italy's prime minister Monti announced fiscal and financial stimulus plan, consist of community investing cuts, taxes increases, raising the retirement age, involving an quantity of 30000000000euros. The market place worried concerning the fierce fiscal retrenchment will make Italy financial state a single devastation soon after another.

In fact, the European credit debt turmoil and financial turmoil is among the stall, may be the main of financial state rather than debt, the credit debt turmoil may be the cartier ballon bleu diamonds insufficient competitiveness in the financial end result instead of a cause, at precisely the same time credit debt turmoil also counteracts economy, restricting financial development, therefore forming a vicious spiral.