European Financial System is ‘Nearing a Grand Catastrophe’
SputnikNews.com
15.07.2016
The cheap money policy of the European Central Bank creates risk for the entire European financial system, a German economist said.
The European Central Bank purchased €85.1 billion ($94.8 billion) of debt in June as it increased its asset-purchase program, Bloomberg reported.
The asset-purchase program is part of the ECB’s quantitative easing plan. The pace of buying in June compares with a target of €80 billion per month. Thus, the bank is directly investing into the European economy, bypassing the banking system.
This program creates significant risks while its advantages are questionable, financial expert Ernst Wolff said. He warned that the initiative may result in a total financial collapse.
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