The ECB's Liquidity Leak

I wanted to do something on this but my draft takes were getting too long even for me to stand.  Tyler Cowen rescues me by providing the proper foil. The core issue is that interests are still high in Spain, Portugal, Greece, etc even as the ECB base rates and consumer rates fall in France and Germany. Tyler's take

Would the new helicopter drop money be kept in periphery banks and lent out to stimulate business investment?  Or does the new money flee say Portugal because Portuguese banks are not safe enough, Portuguese loans are not lucrative and safe enough, and Portuguese mattresses are too cumbersome?

READ THE ORIGINAL POST AT www.forbes.com