BANKERS IN NEED INDEED

Can you believe it?

A 2 trillion euro 'warchest' can be found, possibly and probably created out of thin air, as Tommy Cooper said, just like that!

The following report makes reference to the magic of money creation.

Almost from the moment the €440m EFSF was created it was deemed too small. Hence all the talk now about how to enlarge the bailout fund to convince the markets that Europe has the firepower to contain the crisis. But the problem is that the countries that need to contribute to the EFSF either cannot afford to put in more cash or lack the political support. So ideas are now being conjured up to make it bigger without putting up more money – to turn one euro into five, as one EU source put it. Analysts at Credit Suisse say one idea would be to turn the EFSF into a bank to enable it to use bonds it has bought from troubled countries in exchange for fresh funds at the ECB. Credit Suisse acknowledges this might look like a "story of a leveraged hedge fund" and would mean that countries such as France contributing to the EFSF might find their AAA rating under threat. They think a better idea would be to enlarge the EFSF and lend a third of the funds to governments to buy bonds, a third to recapitalise the banks and the rest to create an EFSF bank.

[source : Only ECB has power to 'scare' global stock markets, warns IMF, The Guardian, 26/09/2011]

And of course, the answer is to...create yet another bank!

Create yet another another bank that can use the money in the EFSF as a basis from which to create yet more money (in this case 2 trillion) out of thin air!

Children in Need Day raises £30 million a year, as we give our money, and we expect to save all the children in the world with just that. To save the bankers and their Euro dream we will be using 440 billion to create 2 trillion!

Bankers in need indeed.