A bank, not in the PIIGSC (Portugal, Ireland, Italy, Greece, Spain, Cyrpus) is insolvent. It’s in Netherlands. So the government is taking it over.
Inflation is an expansion of counterfeit credit. Deflation, a forcible contraction of credit, is the inevitable consequence of inflation.
– goal is to “shore up confidence”
– Netherlands’ deficit was already noncompliant, now even worse
– collapse would have been too big, and hurt financial stability
– SNS gets €2.2B “capital injection” (free money), €1.1B loan
– the gov’t will guarantee €5B of its debts
– people will be be mad at use of public money, so other banks forced to contribute €1B
– €2.3B out of €9.8B loans are nonperforming–23 percent!
http://www.reuters.com/article/2013/02/01/us-dutchfinance-cenbank-idUSBRE9100G920130201
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