Europe About To Be Hung Out To Dry (Liquidity Wise)?

Tyler Durden's picture

Two rather unpleasant headlines for the Old World from Reuters:

  • There has been disagreement in ECB governing council over new liquidity facility
  • ECB will not announce plans for a new liquidity facility to help Irish banks on Thursday

EURUSD has now erased all of the CPI-beat gains. Bond selling picking up.

More as we see it.

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bankrupt JPM buy silver's picture

its okay JCT can raise rates like Ben in 15 mintues, EVERYTHING IS OKAY STOP THE PANIC!

MsCreant's picture

Long Mad Max Futures.

"Who run barter town?"

Goldenballs's picture

2 economies enter only 1 leaves.

MsCreant's picture

I am the Chairsatan. I'm a fuel injected printing machine. I am the rocker, I am the roller, I am the out-of-controller!

Element's picture

I think you meant;


"...I'm a fuel injected benocide machine..."


PS: Japan just caught a sausepan in its throat.

Manthong's picture

2 forms of exchange enter, only one leaves.

Tulli's picture

Naaaaah, posturing, that's all.

umop episdn's picture

I  think the same way. TPTB have to take the attention/heat off of the declining dollar or it might be a disorderly decline. Even 'Merkin sheeple will wake up if prices double in a month or two--I hope. There is a lot of hatred out there properly directed at the war whores, of which the QSA is the worst.

Quintus's picture

"Even 'Merkin sheeple will wake up if prices double in a month or two"

Merkins - the fashion 'Must have' of days past that has sadly fallen from favour recently.

oogs66's picture

SOVX +4  175    Portugal 10yr bond 8.2% and Irish 10yr 10%.  Both new records.  Grece 12.75% and at or near previous record.




GOSPLAN HERO's picture

Gold is getting horny again.

Silver is erecting too.

MsCreant's picture

I won't call the doc unless it lasts over 4 hours.

Cash_is_Trash's picture

You'd expect somebody would call a doctor in economics, and the government did.

But the motherfucker chosen is a psychopathic currency killer.

Paging Dr. Chairsatan, your stomach-fingers are needed in the currency department.

monopoly's picture

Hmm, think I will stick to my gold and silver and pass on CMG

Sudden Debt's picture

I've drunk already so much coffee today...


I'm going for a piss...

Cindy_Dies_In_The_End's picture

We figured that much SD. Switch to decaf.

Cash_is_Trash's picture

Bernanke's emails ordering fiat debasement look like Suddens comments:



QUANT and ease, QUANT and ease... REPEAT TIMMAH!

TaxEstate's picture

Is there such a thing as "limit up" S&P futures? ;-)

Quintus's picture

Do you really need to ask?  Naturally there is no 'Limit Up' for the approved markets (Equities), only for the ones deemed unacceptable (Commodities, Precious Metals) to the central planners in charge of the markets

misterc's picture


Blue horseshoe loves AIB

bingaling's picture

Quick lower rates !!!!!Has Trichet just played the Bernanke card ? "We thought we would be able to raise rates but with the current liquidity crisis it doesn't look possible and we are lowering rates but really really soon we will be raising rates in two weeks , if things have settled down a bit .But let me make it clear rate increases are I am serious this time ,if the liquidity outlook looks better .Also winds in tokyo may also change our assessment as to what rates should be . In conclusion , rate hikes are imminent even though we are lowering them for a very very short period of time ,maybe even only 24 hours,then we will raise like you have never seen rate hikes before if liquidity problems are resolved of course. The Union is strong and determined to do whatever it takes to make sure Germany pays for all of this and no one loses money betting they might lose it . Thank you and I AM OUTTA HERE.  "

A Man without Qualities's picture

ok - now I think I am getting it.  Impending liquidity crisis = no rate rise = bullish for equities = BTFD.

It's a bit like seven degrees of Kevin Bacon - how many logical steps does it take from any situation to get to BTFD...

willien1derland's picture

Intersting Scenario - what about USD appreciation - if EUR falls to 1.36 or less will USD appreciation stop the S&P ramp?

silvertrain's picture

Last one out hit the lights please..

william shatner's picture

Trichet is pumping up the euro goldprice, today is the end of Q1. MTM goldprice in euroland, not the crappy fixed 42$ goldprice in the US of A.

falak pema's picture

Maybe Trichet wants to be remembered as Trichetor...or translated into 'anglais' : Trickster...!

snowball777's picture

I stand firm for our soil
Lick a rock on foil
Say reduce me, seduce me,
Dress me up in Stussey
Hell is round the corner where I shelter
Ism's and schisms, we're living helter skelter
If you believe and deceive common sense says shouldn't receive
Let me take you down the corridors of my life
And when you walk, do you walk to your preference?
No need to answer till I take furthur evidence
I seem to need a reference to get residence
A reference to your preference to say
I'm a good neighbor, I trudge,
So judge me for labour
The bond on me ensures my good behavior
The constant struggle ensures my insanity
Passing the ignorance ensures the struggle for my family
We're hungry beware of our appetite
Distant drums bring the news of a kill tonight
The kill which I share with my passengers
We take our fill, take our fill, take our fill

Confused by different memories
Details of Asian remedies
Conversations, of what's become of enemies
My brain thinks bomb-like
So I listen he's a calm type
And as I grow, I grow collective
Before the move sit on the perspective
Mr. Quaye lay in the crevice.
And watches from the precipice
Empirial passage
Heat from the sun somedays slowly passes
Until then, you have to live with yourself

buzzsaw99's picture

The banks will make a killing on this scheme.

Goldenballs's picture

Europe depends on the half wits at the EU for survival.What a f****n joke.

Quintus's picture

The Euro certainly does, but I would argue that 'Europe', as in the people of the continent, would be far better off if the half-wits at the EU, as you put it, were all swinging by the neck from the lamp-posts of Brussels.  

Lord Peter Pipsqueak's picture

Euro up 0.35% against dollar,0.56% against sterling,no matter how bad the news gets,the Euro just keeps going up and with it the stockmarkets.

Snidley Whipsnae's picture

Forbes snuck this into an article that few seemed to notice... Here is their take on a 'new gold standard'... It sucks... Maybe this isn't off topic?

"Under a Dollar Bill system, the monetary base consists of fiat dollars (both currency and bank reserves) created by the Federal Reserve.  The Fed is not allowed to set interest rates, and it is relieved of responsibility for promoting full employment.  Instead, the Fed is tasked with employing its Open Market operations to adjust the size of the monetary base so as to keep the COMEX price of gold as close as operationally practical to a target gold price. Fractional reserve banking is allowed."

edit to post link:

snowball777's picture

Fractional reserve banking (credit money bubble generation) is a more powerful tool than OMO so a "Dollar Bill" fiat system would not work either...don't bring nailclippers to a gun fight.

bingaling's picture

Wow it is like what we have but out there in the open .

Right now the Fed can't raise rates

They are allowed to print monetary base

They can't create jobs .

They manipulate the price of gold .

Did I miss anything ?