European Banks Are Paid To Borrow For First Time Ever As Euribor Goes Negative!

• European Banks Are Paid To Borrow For First Time Ever As Euribor Goes Negative!
  by Tyler Durden, www.zerohedge.com  
  Mario Draghi said this week that the transmission channels for European Q€ were opening up and crowed how well his cunning plan was working (by well we assume he means stocks are up). Today we get the ultimate test of that ‘transmission’ as 3-Month EURIBOR fell below 0.00% for the first time ever (likely wreaking havoc on European derivative pricing models). In English that means banks are being paid to borrow from one another in the interbank money-markets (which sounds a lot like a ‘glut’ of excess cash) seemingly confirming ICMA’s de Vidts fears: “We are scared about the [repo] market freezing,” as the ECB is “driving without headlights in the dark.” Of course this is yet another disturbing distortion on the heels of homeowners being paid to take out mortgages…
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  Banks now paid to borrow from one another…
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  read more!

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