panic like the pension fund for U.S. and EURO banks are...
As you too will read, we do not know quite what to make of this.
Whether or not this will continue, or quickly reverse itself.
What we DO need to remember is that Ins Co & Pension funds are very large investors in RE mortgages - both residential and commercial. IF they have lost a lot of money on those types of RE loans, will they be interested and/or willing to make more of them? Probably not. That is NOT good news.
The reason why EURO banks are stashing cash MAY be tied to the predictions that they will need to take massive additional RE write offs, soon.
For U.S. bank/lenders are taking on fees wherever and how ever they can - to raise cash.
This might be a different method to address the same problem(s).
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May meltdown singes pension funds
May's stock market selloff was predictably unhelpful for retirement savers.
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Euro banks stashing cash under ECB mattress
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