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European Bank Interest In ECB's Weekly "Monetization" Auction Plunges
As reported yesterday, the ECB today completed a weekly liquidity withdrawing operation consisting of Fixed Term Deposits, to "remove" the excess cash obtained from €51 billion worth of sovereign bond purchases. This was the sixth consecutive such auction, and the sixth consecutive decline in the bid to cover. 67 bidders participated and submitted total bids for €71.559 billion, to take down €51 billion, or a 1.40 Bid To Cover, which was another sequential decline compared to last week's €47 billion in take down after €71.078 in total bids, or 1.50 bid to cover. The weighted average allotment rate was 0.31%, with a maximum rate of 1% and a marginal rate of 0.4%. With another auction next week, and then many more, all dependent on the amount of debt that Spain et al place "successfully", we expect the Bid To Cover to decline consistently, until we hit a 1 BTC and the ECB realizes its monetization program is a failure.
The declining interest in auctions, as seen by the drop in Total Amount Bid and Bid To Cover, and the increasing cumulative total of monetizable amount that must be auctioned off (a scary combination), can be seen below:
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Plunges, bitchez
I come to you as the one who is strong. I bring you all advice and direction. In this light I assume the role of leader, hero, and guide.
But that is only the role or clothes that I wear when I am in relationship with the uneducated. For the educated see me in a completely different light: as a parasite.
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From that perspective, my response when the educated learn of my nature or when my feeding can not be hidden should be obvious to all.
I hide my self in a storm of blood.
//// I hope I have done the math correctly. This is not a palatable situation, but one that deserves to be defined correctly and examined by those who care.///
Who wrote?
Actually, is it an ECB failure, or a Bernanke failure? Where, ultimately, did the concept and CASH come from for the ECB to start this transparent scam?
what did you expect? the bid ratio to increase when the amount increase....give me a break ZH...you can better than this (popular sh.t)
I would certainly expect the bid interest to increase... or, stated otherwise, it better increase before another 20 billion in auctioned off as the BTC will be below one. And that's math sh.t, not popular.