The ECB’s leverage has reached all-time highs, even higher than at the peak of the global financial crisis back in 2008. That leverage is set to jump as the ECB gets ready to loan the banking sector unlimited quantities of euros for three full years. Bloomberg’s chart of the day shows ECB leverage exceeding 30 times its assets.
As the European economy weakens, the ECB is forced to lend more, levering up its balance sheet. More leverage, more risk…
