Europe Banks Hoarding Cash Resist Draghi Bid To Avoid Crunch!

• All major western banks are bankrupt! When they go under, the entire financial system will collapse. European banks do not trust each other and thus inter-bank lending has frozen up. If these banks do not trust each other, should you trust them? Obviously not. Limit your exposure to these banks. Keep your wealth outside of the banking system! Got physical gold yet?
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• I do not believe that the €489B given to these banks are to help boost economic growth. It is simply a bailing out of these banks. The Illuminists do not want to help John Q Public. They have a different agenda of continued austerity (ie. economic contraction and increased poverty) while building up more sovereign debts (ie. enslavement and financial rape) ! (emphasis mine)
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  Europe Banks Hoarding Cash Resist Draghi Bid to Avoid Crunch! 
  Jan. 11 (Bloomberg) — Banks are hoarding the European Central Bank’s record 489 billion-euro ($625 billion) injection into the banking system, thwarting attempts by policy makers to avert a credit crunch in the region.
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  Almost all of the money loaned to 523 euro-area lenders last month wound up back on deposit at the Frankfurt-based central bank instead of pouring into the financial system, ECB data show. Banks will use most of the three-year loans to meet their refinancing needs for this year and next, analysts at Morgan Stanley and Royal Bank of Scotland Group Plc estimate.
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  “It’s illusory to think that the measure will translate into credit generation,” Philippe Waechter, chief economist at Natixis Asset Management in Paris, said in an interview. “It will assuage some of the anxiety banks have regarding their liquidity needs. But they’ve engaged into a massive overhaul of their strategy and shrinkage of their balance sheets, which is, coupled with the deteriorating economy, not compatible with increasing credit.”
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  Governments are urging European banks to keep lending to companies and individuals while requiring them to raise an additional 114.7 billion euros of core capital by June to weather a deepening sovereign-debt crisis. Instead of raising equity, most lenders across Europe have vowed to meet capital rules by trimming at least 950 billion euros from their balance sheets over the next two years, either by selling assets or not renewing credit lines, according to data compiled by Bloomberg.
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  ECB Deposits
  That has stirred concern among policy makers that banks will cut lending and throttle growth in the euro region. Banks have been parking almost all extra liquidity from the ECB loans back at the central bank. Barclays Capital estimates firms used 296 billion euros of the Dec. 21 three-year loans to replace maturing shorter-term ECB borrowings. That left only 193 billion euros of additional money for the financial system. Overnight deposits with the ECB have jumped by about 223 billion euros since the loans to a record 486 billion euros, suggesting the central bank funds haven’t so far reached customers.
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  Banks account for about 80 percent of lending to the euro area, making them “crucial to the supply of credit,” according to recently installed ECB President Mario Draghi. By contrast, U.S. companies rely more on capital markets for financing, selling bonds to investors.
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