ECB Cheap money take up

The European Central Bank (ECB) offered a total of Euro 529 billion to European banks on Wednesday at 1% and over 800 of them applied for a cut of it.

Well wouldn't you like to borrow money at this rate?

This is the second instance where the ECB has offered the chance to borrow money at this level for three years, the first operation in December, had a take up of Euro 489 billion, which it is hoped will filter down and result in cheaper and more available funds to business.

This type of activity, coupled with the nearest we are going to get to a Greek debt solution for the time being, has fuelled an equity rally this year, that may tempt more conservative fund managers into waters that were highly dangerous for a large part of 2011.