If you think socialism works, take a look at Europe | New York Post

“…The ECB will now be buying corporate bonds of European nonbank companies as well.Of course, that raises all sorts of issues. Will the ECB be buying bonds of Airbus, which is Boeing’s largest competitor in airline manufacturing? That has the potential to effectively enable the ECB to give unfair advantages to Continental companies looking for financing.And will German automakers like Mercedes Benz, BMW or Volkswagen be sellers of bonds? The funding costs of these companies could be dramatically reduced, enabling them to sell their cars more profitably than American or Japanese manufacturers.The second socialist measure: The ECB will lend money to banks at zero percent interest rates, and pay them 0.4 percent of the amount of euros lent. So theoretically, if Deutsche Bank or any other bank in Euroland lends €1 billion, it will receive a stipend of €4 million from the European Central Bank.”

Source: If you think socialism works, take a look at Europe | New York Post

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