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Activity In ECB's "Discount Window" Jumps On Greekman Brothers Redux
In the past two weeks, borrowings under the ECB's "discount window" equivalent, the Marginal Lending Facility, have jumped substantially. Where on April 25th just E2 million was outstanding, it has subsequently jumped all the way to 2.6 billion on May 3 (yes, for Americans these sums are paltry, but for European, and especially Greek banks, half a billion could mean the difference between life and death). And with the O/N-3M repo spread blowing out, the ECB could be once again becoming the lender of first and last resort. One of the rumors for the jump in borrowings has been that Greek Piraeus bank was on the verge in the last days of April after a full blown bank run, and only a last-minute MLF borrowing helped it stave off bankruptcy. The MLF dropped to E1.3 billion yesterday, although this could be merely a liquidity shift from one source to another. Keep a close eye on the ECB's daily MLF report to determine if there is a backdoor bailout occurring of one of the more troubled European banks. We will also provide details later on today, when the data becomes available, on whether the Fed has disclosed any FX swaps having taken place in the prior week.
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Tyler you talked last week about the Fed's legal requirement to publicly disclose the activation of the FX swap lines. Can you please clarify as to timing? Thanks.
The ECB will become an everlasting gobstopper machine of free money just like the fed:
http://www.youtube.com/watch?v=-9RiflNC8KY&feature=related
Here is some more idiotic hopey changey stuff on Bloomberg from the Egregious Ben Bernanke:
Bernanke Sees ‘Reasons for Optimism’ on Bank Credit (Update2)
http://www.bloomberg.com/apps/news?pid=20601087&sid=aB_i.WB8GeU4&pos=3
ECB still trying to act "austere" "conservative" and "balanced"
Soon enough they'll join the unhooked generation and go skinny dipping with the Fed and Japan and print, print, print!
Exactlt - the ECB/IMF and other Euro guys strike me as academics that got As in their traditional econ courses. No spark, no imagination and no ability to do anything bold. They seem to believe they are running a quasi- gold - standard currency. This is a major handicap.
you guys are crazy, this is a perfectly good dip to do some "truck loading"
not sure if your joking but I agree, gold is our truth pilot and the more it rallies the more they print and thus higher stocks will go.
"Greekman Brothers Redux"
Too many possibilities here to even try.
Could I get a list from someone of the areas of the economic world GS isn't involved in? I suspect it is much shorter than asking what they are involved in, but you never know.
Anyone? Bueller? Bueller? Bueller?
http://www.youtube.com/watch?v=f4zyjLyBp64
Yes, I just love how an unaccountable "central bank" run by some aristocratic fucker in Europe and some Princeton dick here, can simply pick and choose when, how much, and for how long, they can steal, redistribute, and "loan" the spoils of "the people's" productivity.
Yes, the very measurement of our productivity, that which with we feed our families, manipulated by "the wizards" as they see fit without any restrictions by our "elected" officials.
Something tells me history will not judge these people and their lackeys kindly.
EXTRA: TRICHET AWARDED DON QUIXOTE 2010
http://williambanzai7.blogspot.com/2010/05/jean-claude-trichet-receives-...
I always thought of Greece as more of a Bear Stearns. It's not till the next one (Portugal?) drops that we get to Lehman. Of course by then all hell breaks loose, sovereign credit markets freeze and even GS/US can't roll it's short term liabilities. The analogy falls apart when it comes to the bailouts. I wonder if they'll all just print, switch to gold, or reset everything to zero. ...quite fascinating in a morbid kind of way.
Actually the analogy holds pretty well. Greece , like Bear Stearns is getting bailed out - like BS with some pain. The next one - Portugal/Spain will not be bailed out - like Lehman! September looks like a reasonable estimate of when the yogurt hits the fan ? need to be 100% in 3 month US Treasuries, gold and maybe selected gold shares by then.
In the end everyone will print.
That MLF gives everyone a turn.
MAY 1st:
"The weekly DOW chart shows an expanding wedge indicating a significant move is probable... this remains an overbought bear market rally and the uptrend could falter at any time.
http://www.zerohedge.com/forum/latest-market-outlook-0#comment-326767