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ECB Withdraws Massive €295 Billion Of Liquidity In One-Time "Fine-Tuning" Operation
A quick glance at today's ECB open market operations section indicates that even Trichet may be getting a little worried about liquidity gone wild in Europe. Of course, his US counterpart has no such concerns. Earlier today, the European Central Bank announced that it had drained
a whopping €295 billion in an unscheduled, one-time
liquidity-absorbring, fine-tuning operation. There were 193 bidders
supporting the ECB operation. Is liquidity getting a little frothy? "Fine-tuning" liquidity by almost a third of a trillion may seem to indicate so.
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dang....how did they do this? Did they have a bonfire party and burn the bills and bonds?
It used to be called a burnt offering.
The Europeans are not pussys like the ones in the US.
Simple as that.
so says the anonymous guy....
buy more everything
Maybe they took a look at the Ted Spread which dropped under 11bps today.
I'm sure Bernanke will not even consider draining liquidity until crude blows through $150 and gas prices blow through $5/gallon here in the US.
After all, he would not want GS/JPM/MS profits to suffer.
I used to follow the Ted Spread devoutly. Now I think the Ted Spread (like all other indicators) is no worse or no better an indicator of what a ho who spreads her legs for you wants you to do to her !!! haha
The only reliable indicators are found at dailyjobcuts.com now.
To drain liquidity from the US (world) economy would be the equivalent of financial suicide, unravelling all the various "official" Ponzi schemes we don't yet know about, causing all the chickens to come home to roost.
Not going to happen anytime soon, if ever.
Yep, free money for the banksters and bankrupt governments as far as the eye can see.
Fed's previous duties: The Fed's mandate is "to promote sustainable growth, high levels of employment, stability of prices to help preserve the purchasing power of the dollar and moderate long-term interest rates."
Fed's new duties: To keep interest rates effectively at zero until the banks are made whole again and the economy recovers to the point where tax revenues come in line with expenditures....or until everything implodes.
"Fed's new duties: To keep interest rates effectively at zero until the banks are made whole again and the economy recovers to the point where tax revenues come in line with expenditures....or until everything implodes."
Either way the powers that be win. If the system "recovers" it will have done so by way of a redistribution of wealth away from the middle class and towards the financial elite/powers-that-be. And they can start the entire bubble process all over again.
If it all collapses into a smoldering heap, by that point the tax payer is shouldering the debt, not the private parties/powers-that-be, and the debt can "just" be defaulted on. It's just paper, right. What is the rest of the world going to do about it? They are in up to their necks themselves and are captive to the system as much as we are.
Plus, as a sort of bonus to the bonus, the powers-that-be get to create an entirely new system from scratch. Only this time, because of the emergency, it can be clearly slanted towards the powers-that-be because we "need" them to stimulate the dead economy by buying into the new system.
We plebs can just suck hind teat. Don't like it? How's martial law sound sucker? Wake up people to your own enslavement by your own consent. Doing nothing to stop this insanity is consent of the current insanity. There is no other way to spin this fact, other than to express your impotence through violence towards each other (can't strike at the powers-that-be because violence only moves down the line, not up) remain oblivious via the boob tube or anesthetize yourself by way of booze, drugs etc.
I like this rent villa , rent villas
duration: 1 day -- like taking candy from a baby and returning it before the baby realizes what happened....
How are these virtually non-events? Does anyone have a theory?
its only one day how could this have a material impact ?
Read the comment above yours. These are non events because they are not real. They are window dressing. Agreeing to not spend your money for one day or even one month is not the same as burning your money. Only burning will do.
did he use this money to buy the u.s. equity market today?
yet another MANIC melt up. propaganda hyperdrive in full force by dragging out a. joseph cohen "stocks have room to run" and from cramer's blog "“So on this, the anniversary of the rally,” Cramer said, “I am telling you it is still not too late to get in the game.”"
Did any sane person think they'd allow a down day on the anniversary of S&P 666? Not gonna happen
He said that? Time to sell!
Check, when C. is saying it's not to late you can bet your hairy ass it is. Sold everything today, made 95% over the year. Only kept real gold and silver, waiting for a dip to buy some more of the real stuff.
- Relaxing and waiting for the S. to hit the fan -
Was that a bazooka in his pocket? via "Hank" Paulson SOB
inflation is not a solution so this is a right decision
The drained amount is only slightly above the amount that has overnighted at the ECB deposit facility.
http://www.ecb.int/mopo/implement/sf/html/index.en.html
Please correct me if I am wrong, but these 1-day term deposits are just a means for the ECB to obtain information about liquidity conditions above the deposit rate. (Of course as a European taxpayer I detest these multi-million EUR a pop "probes".)
http://www.ecb.int/mopo/implement/omo/html/top_history.en.html
It is just an overnighter. But they should be very worried. If the S&P continues to rise 0.7% everyday on no news we would double in 3 months (giver or take). That would actually make people ask questions about the sanity of the system
The inflation transfer system would be completely exposed. The only reason it has lasted so long is because it is a very subtle way of transferring wealth. Too overt a demonstrations and people would wonder about the nature of the money in their wallet why the only winners in this recession are the ones who caused it (banks, government, house flippers, growth investors, etc)
let us go to the disco, Fed is playing the moneytrans.
They do it every month in line with the
Maintenance period LTROs.
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