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Posted By James Bianco On August 16, 2012 @ 9:00 pm In Currency,Think Tank | Comments Disabled
Banks are particularly worried. “Banks and companies are starting to finance their operations locally,” says Thomas Mayer who until recently was the chief economist at Deutsche Bank, which, along with other financial institutions, has been reducing its risks in crisis-ridden countries for months now. The flow of money across borders has dried up because the banks are afraid of suffering losses.
According to the ECB, cross-border lending among euro-zone banks is steadily declining, especially since the summer of 2011. In June, these interbank transactions reached their lowest level since the outbreak of the financial crisis in 2007.
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2012/08/the-euro-2/
URLs in this post:
 When Will the Euro Collapse? It’s Already Dead: http://www.marketwatch.com/story/when-will-the-euro-collapse-its-already-dead-2012-08-15?dist=beforebell
 Greece Should Not be Sacrificed for the Euro: http://www.ft.com/intl/cms/s/0/3c9a0e06-e6c3-11e1-af33-00144feab49a.html
 Is The Euro Dying Already?: http://blogs.wsj.com/marketbeat/2012/08/15/is-the-euro-dying-already/
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