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ECB Monetization Sterilization Back On Track After Last Week's Failure
After last week the ECB experienced a rare event: a failed SMP sterilization tender, when only E60.8 billion of bids from 41 banks appeared to compete for E73.5 billion in recycle monetized peripheral bonds, this week it is back to smooth sailing, after JC Trichet mobilized the infantry and got every single bank to submit a bid: the number of banks participating in today's "liquidity absorbing" operation surged from 41 to 68, and the total amount of bids increased by a whopping 50% from E60 to E92 billion, a 1.4x bid to cover. And lastly while the marginal rate in the last auction of 2010 was 1% with full allotment, this time it was cut by more than half, at 0.45%, with 93.04% of the bids allotted at the marginal rate. Just what changed so drastically in the past week to justify such a huge surge in liquidity and confidence is just slightly baffling.
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"good lovin' gone bad! good lovin' gone bad!" now i'm gettin' "bounced" again. happy new year to you, too.
the banks realize that if they don't work to support the ponzi scheme it's their own ass
BINGO!!!!!
Listen closely boys, if you don't buy these bonds....
It helps with the sterilization or it gets the rate hike. It does this whenever it is told.
http://www.youtube.com/watch?v=RQb2m6VJ-eo
It was a year-end effect. Banks didn't want to show any more sovereign debt on their balance sheets that was absolutely necessary, so they withheld bids last week.
i pledge allegiance
To the banks
Of the One World financial system
And to the Government
For which they own
One Wold
Under the Rothschilds
With 'liberty'
And 'justice'
For the banks.
Christmas and New year is still big holidays in Europe and not even bankers have totally succumbed to Mammon for that period.