why the @ecb would be even considering that another TLTRO will solve stagnation in lending? THREAD

1) the Ecb would be responding to a stagnation in lending with a liquidity measure, aka a long repo
2) depending on the condition that might help banks' P&L in the ST
3) but it will not help the structural issues: first and foremost "what and how is the capital i need to run a banking biz"
4) Banks will need to asess Mrel, Govies weighting and other stuff before re-leveraging their biz, if one is looking at the supply side
5) Tarp in its original design in the USA infact lasted 10 seconds. Preferred subscribed by the Treasury were the defining thing. Aka capital, besides the attraction of Banks to TSY credit rating due to the underwriter (the US Treasury)
6) so you can kick the can as much as you want dear @ecb but this will not change LT behaviour of agents

All the Best
Gianlu

@ThManfredi @micheleboldrin @Phastidio @DeShindig @a_presbitero @dlacalle_IA @jeuasommenulle @Phastidio @upanizza @anatadmati @SMerler
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