Greek Banks Explode to the Upside Off New ECB Bond Buying Scheme

Well, now that rates are negative and banks make money by borrowing it, they need to do something with the excess reserves. Why not buy the shit out of EFSF bonds at huge premiums, so that Greek banks can profit handsomely from it?

Before you do, however, make sure the execs at the banks give you, the European catamite, a ‘little taste’ if you know what I mean.

So, what are we talking about here? The ECB will buy the EFSF bonds that were issued to help recapitalize the Greek banks, as part of their retarded QE program.

Does this make any sense, at all?

Greek banks were prohibited from selling them; because, you know, THEY WERE SUPPOSED TO FIRM UP THEIR BALANCE SHEETS.

“This is good because Greek banks need to take big provisions for non-performing loans and an extra source of profitability could be very helpful for the overall results for the year,” said Nikos Kyriazis, an equity sales trader at NBG Securities.

The fuckery is deep.

Banks are rallying. Greek sovereign bond yields are plunging. QE has saved the day again. God bless financial engineering.