This page has been archived and commenting is disabled.
European Demand For Dollars Spikes To €5.4 Billion In Wake Of Failed German Auction, Spanish Bank CP Problems
Earlier today, Germany conducted a €7 billion Bobl auction, which however filled out the entire order book at a sub 1x Bid To Cover with just €6.12 billion in bids submitted, a €0.9 billion shortfall. In other words, this was a failed auction, with the government having to "retain" €1.555 billion in order to make the BTC seem an acceptable 1:1. Combining this negative news with the disclosure that BBVA may be suffering a commercial paper liquidity crunch, as reported earlier, has resulted in a material spike in demand in today's ECB's 7-Day Dollar auction, which came in at 5.4 billion, compared to 0 a week earlier. Expect the Fed's FX swap lines to increase by a comparable amount when the Fed's updated H.4.1 data is released this Thursday. The euro continues to slide on the negative news, although stocks both in Europe and in the US, continue trading higher as momentum programs once again take control.
»
- 5850 reads
- Printer-friendly version
- Send to friend
- advertisements -
Let em trade it up.
More opportunities to sell at higher prices.
It never ceases to amaze me, we want your shit, cause our shit is worse.
How do these people continue to operate a viable economy?.
Unreal.
Meanwhile, LIBOR continues it upward creap...
Does anyone have a good link for the LIBOR? - was hoping for one that is streaming. Thanks in advance.
http://www.google.ca/search?q=libor&ie=utf-8&oe=utf-8&aq=t&rls=org.mozil...
http://www.bloomberg.com/apps/cbuilder?ticker1=US0003M%3AIND
The rate is set every day at 11:00 am London time.
Of interesting note is that the LIBOR and the Fed Funds rate have a high degree of correlation apart from the "oh shit" moment around mid-October of 2008. The fact that it's creeping up despite the ZIRP policy is very, very, very bad.
Question #1: How will the stock market NOT crash?
Question #2: How will any currency survive this bloodletting?
Question #3: If I had a bar of gold, how would I buy groceries with it?
People will be jumping off of buildings soon.
Yeah just what I was thinking. how are the US markets into the green now up over 1% if thats the case.
Soon: on this site, sometime in an undeterminedly distant future.
For questions 1 and 2, just keep tuned on the next days. Practical answers to be delivered.
#1. It won't crash in nominal terms. The notional dollars represented by the index will be hollowed out. (Compare, e.g., the current price with that same price run through a CPI deflator, even with statistical fudges, to find the true value of the index.
#2. Some currencies may choose to inflate more slowly (e.g., a 'northern euro') than the others. The only currencies that survive will be those that explicitly default.
#3. You won't, you'll buy the grocery store with it. Hoard small silver coins (e.g., old US dimes, pre-1970 French 5-franc pieces) for barter. I have heard from old-timers here in Europe that silver coins were accepted near the end of WW2 in occupied areas when it was known that the German ration-money would soon be worthless.
question #3--you buy the grocery store..
I think you can figure out the grocery bit, with the help of others here. But I have a second house I'd like to sell, and I would happily take gold bars if you're interested.
1 minute to $13T
http://www.usdebtclock.org/
And just 6 minutes later, its already added another 750million
Oh, sorry, that must have been me. I read some books, and decided to break some windows, seeing how it's good for the economy.
LOL. ZH should offer to do it's part for the economic revitalization of America and offer to have a Project Mayhem-like effort to destroy things so we can rebuild. Tongue in cheek of course.
In a group of sky divers, say 100, only 10 have operable chutes and have long since pulled cord and are high above floating to the ground. Those without chutes do not wish to consider the future and are busy trading collector cards at terminal velocity.
Nice!
yes, euro falls on fiasco german bond auction, global stocks still up over 1% and probably will move up alot more after todays's 5yr and tomorrow's 7yr auctions; but wait there's better: yield on 10yr bunds are still stuck at 2.6%. This, at a time when germans can't siphon their savings into switzerland fast enough.
how should there be a streaming chart for libor? it is fixed once a day...
stupid f...
Stupid?
I feel stupid for wasting mine and others time by responding to your reply, but some of us come here to learn, we're not all know-it-alls such as yourself, slick.
Check Reuters or BBG any time past 6 am EST.
The LIBOR rate for the day is quoted.
It should save you a lot of trouble when it comes to LIBOR, LIBOR-OIS EUR-LIBOR, TED etc etc.
Uncalled for. Bad etiquette when someone asks for assistance
Thanks for your reply - you add a great deal to this forum.
No matter how many auctions the europeans fail over there, Bond Vigilantes are scared to dead of Ben and his rating agencies.
Moodys just confirmed US in great shape.
Today I will buy a an a second Ipad, a 46" 3D 120MHZ and a PS3 for my guest room on credit, just to celebrate "Ponzi forever".
Ben Lightyear - QE To Infinity and Beyond!
Chancellor Merkel's gambit appears to have failed. But at least she'll have a new theme song:
Angie, Angie, when will those clouds all disappear?
Angie, Angie, where will it lead us from here?
With no loving in our souls and no money in our coats
You can't say we're satisfied
But Angie, Angie, you can't say we never tried
Angie, you're beautiful, but ain't it time we said good-bye?
Angie, I still love you, remember all those nights we cried?
All the dreams we held so close seemed to all go up in smoke
Let me whisper in your ear:
Angie, Angie, where will it lead us from here?
Not everyone is convinced that things are this bad....it is to much "flight to safety" in the prices.
Another failed German auction, this isn't looking good. And grandiouse schemes and pledges from the PIIGS and other european partners on how everything is fine move along. Germany (which is a rich country) is having trouble with their bonds, then the PIIGS and other countries should be failing left and right, and they have but it's being obfuscated and hiden. There was a reason Britain didn't join the EU (they have their own insolvency problems, but gues what they have still have their currency), they knew that a union of 16 countries with different financial backgrounds and ethics with one currency couldn't lift all of them at once. One or two or even five countries would be the loser in the bet and would have to be the one that can't keep up with the others. So by having their currency still they could devalue their money and make their debt less expensive. Don't get me wrong, they will still have financial troubles and be in default but they still can use THEIR MONEY as a tool to help lessen the financial calamity.