From Strategy of Simone Wapler (FRANCE)-
In Europe, the idea of Brexit has stirred the media into a frenzy. At the same time, it has created a diversion for a new bank bailout plan that is brewing in the shadows. The ECB is preparing a new bank bailout plan. Around € 400 billion will be put towards the purchase of 30% of outstanding banks loans. These loans do not include home loans. How benevolent our Mario is.
In return (if that is really what you want to call it), the said banks must increase their outstanding loans by 2.5% over the next two years, says Agefi. Needless to say, this free money is directly affecting your savings. Increased new loans will eventually inflate the price of investments, lowering their performance. If you have capital in investments, then Mario’s deal will affect you negatively.
The goal of all this hogwash is to throw Italian banks a lifeline. But think about how it works. The ECB is buying up outstanding loans…. So banks will make more. This wonderful project certainly has a bright future ahead.