The dark side of LTRO

The European Central Bank’s “longer-term refinancing operation” has boosted share prices around the world and has lowered borrowing costs for hard-pressed eurozone countries like Italy and Spain. But is the ECB’s shot of cheap funding a silver bullet – or just another dangerous sugar high? Alberto Gallo, head of European Credit RBS, and Mary Watkins, the FT's capital markets correspondent, talks to analysis editor Frederick Studemann about the latest attempt at crisis resolution.