The ECB has increased its balance sheet by EU1.7 trillion in the first half of the year, going from EU4.664 trillion to EU6.360 trillion at the end of July. This enormous liquidity has gone into direct asset purchases and negative interest loans to banks. However, whereas the stock market shows that stockholders and speculators filled their pockets, only part of the liquidity has been used for credit.
Whereas banks have maintained credit to the corporate sector, as this was covered by government guarantees, housing and consumer loans have collapsed.
