The ECB and China are allowing their banks to post the very same products that Blew-Up the Financial World as collateral for loans. The banking crisis in Europe is devastating because the reserves were the various euro bonds of all member states. Cyprus went down because of their losses on Greek bonds. Banks is Europe are so bad, the ECB will accept just about anything to try to keep the system floating. This is a primary reason there is a tremendous risk of a massive capital concentration into the USA markets fleeing Asia and Europe.
