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What today’s Massive ECB Liquidity Operation Really Means

Early today 523 banks requested an unprecedented €489 billion ($640 billion) in super-cheap funding from the European Central Bank.

But the massive lending operation has garnered only a tepid response from markets, with short-term government bond yields rising in Italy and Spain, and markets virtually unchanged on the day.

So what happened? In general, initial investor reaction suggest that this was not the back-door bailout some were hoping for, and that expectations were simply too darn high.

A few early conclusions…..

Read more: http://www.businessi…2#ixzz1hC99PTGQ

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