Monetary madness in the Eurozone

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The dramatic fall in bank lending embodies a severe policy mistake. After the 2008 crisis, US banks were forced to recapitalize themselves but little of that happened in the eurozone, so we are now saddled with Japanese like zombiebanks of the 1990s, as you can see in the graph, banklending to the private sector is still contracting.

Also, M3 growth is very moderate (partly, of course, as a result of the weak banklending), the ECB has much more room to ease, they should embark on substantial QE, but of course they won't.