From Reuters:
Bank funding stress threatens Europe credit crunch
The risk of a credit crunch in southern Europe is rising as banks face stress in their medium- to long-term funding, forcing some to shrink their lending, analysts said on Monday.
European banks were rocked last week by concern about a squeeze for short-term funding, with tougher and more costly financing and a retreat by U.S. money market funds prompting lenders to turn to the European Central Bank (ECB) for more cash. France’s banks were hit particularly hard.
“Bank funding remains a key source of risk for bank earnings, ability to lend and a drag on economic recovery … the risks of a credit crunch in southern Europe are rising,” said Huw van Steenis, analyst at Morgan Stanley…
The speedy deterioration in funding markets — which were a lead indicator of pressure points during the 2007/08 financial crisis — has raised fears about the knock-on effect on fragile economies.
When did you last hear the term “credit crunch”?
That’s right. GFC1.
Brace yourself for GFC2 (or more correctly, GFC1.1 … because the first never really went away).
Barnaby Is Right 
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