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European Banks Giddy To Bid Up ECB-Regurgitated Spanish Bonds In Latest Fixed Term Deposit Tender
Interest in the ECB's weekly 3-'On (Monetization Sterilization Operation) assault on free markets, also known as the Fixed Term Deposit Liquidity Absorption Tender was high, and came at precisely the same level as last week's. €97.2 billion worth of bids were chasing after €60 billion of ECB-regurgitated sovereign bonds, resulting in a 1.6 Bid To Cover, exactly the same as last week, when €98.3 billion of bids were after the same amount of ECB-sterilized worthless Spanish bonds. Of course, in other countries the Ponzi occurs by the ECB accepting collateral from banks which purchase their own sovereign debt. As Reuters reported earlier, 90% of the most recent 26 Week Greek Bill operation was purchased by Greek banks which subsequently received 100 cents on the dollar for each bond from the ECB- if there is a more accurate definition of a pyramid scheme we have yet to hear it. The marginal rate on the Tender came at 0.64% with a 1.00% max rate. The weighted average allotted rate was 0.56%. 88 banks participated in the auction, a slight increased from last week's 85.
Elsewhere, demonstrating that real liquidity in Europe is bad and getting worse, 3M EUR Libor rates rose yet again, now well over 0.8% at 0.81125%, the highest since August 26, 2009. The ECB's deposit facility saw a plunge in usage, dropping to just €52.5 billion yesterday, as banks now have to look under the cushions for any and all free euros to allocate. Good luck European Small and Medium Businesses in trying to get a loan.
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Where do they get this great tasting hamburger for dinner every day. I know there are no more cows in the world and I know no one is dying. We are all by ourselves here at the Monastery and we never seem to have to empty the jacks. Is there something Cook is not telling us?
Giddy, Bitchez!
Amidoinitrite?
Double post. Sorry.
eBay for junk debt.
Well, this is far less than America's Medicare/Social Security PONZI scheme (over $100 trillion). Of course being less bad is a CNBCBSABC term so you know what that means...