Euro crisis still very much alive and pressing
To recap: last year the ECB finally began to take action to deal with the acute problems in the sovereign bond market and the banking market, now increasingly and worryingly scrambled together. Through two successive waves of cheap (1% pa) money, a massive trillion euro was pumped into the banks, in what was called — long-term rollover.
Although significantly less in net terms, this injection of liquidity (in November and March) was sufficient to significantly cool the sovereign bond markets. It was also a mechanism, as I have noted previously, to allow the banks to begin to fill some holes in their own balance sheets.
