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One European Bank Uses The Fed FX Swap Line For The Current Week, As ECB Overnight Borrowing Rises To Three Month High
After last week 2 European banks announced they are using $430 million in a Liquidity Providing 7 Day USD operation, better known as suckling on the Fed's FX swap line, today's the ECB confirmed that one bank had bid on the facility, effectively withdrawing $35 million. The operation came at a rate of 1.19%, higher than last week's 1.18%. It is unclear if the lone bidder is one of the two banks that used the swap facility in the prior week. All this confirms is that the liquidity situation among European banks is certainly not getting better, as financial institutions continue to be squeezed for both dollars and euros, even as the 3 Month Euribor spot had receded slightly in the past week, in direct correlation with the EURUSD fixing.
And confirming that the European liquidity situation has not ended its deteriorating spiral, the ECB announed that borrowings on its Overnight Marginal Lending Facility reached 3 Month highs, at €1,861 billion, the highest since the €4 billion borrowed on May 12, when Europe was crashing and burning.
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The latest "dead cat bounce" of the "dead cat" .... I mean of the EUR
http://img265.imageshack.us/img265/9184/eurodeadcats.gif
The Euro Crisis and the Coming Euro Collapse Act II- Time to Check How Austerity Is Going
I can't believe this shit is legal
so the ECB marginal lending facility had highest borrowings during the 2 big crash this year.....after the left shoulder and the head.....
This is all nothing but normal central bank activity Tyler. Go back to bed and get some sleep. After all, I heard Joe "idiot savant" Kernen say this morning that stock market animal spirits are back "baby" because one company wants to buy another company for a quick shot in the arm and another way to cut more costs to temporarily boost "earnings".
After all, if you keep on buying companies, everyone can write off your numbers as simply digestion problems forever and ever. Which means the market's just fine, ignore those 10 year US Treasuries at 2.6% and the latest death spiral gaining speed and momentum. Nothing to see here, move along.
Let's see, I think I'll try the cherry Kool-Aid today. Hope it doesn't stain my pearly white teeth like that boysenberry did yesterday. Yuck.
<sarcasm off>
"savant"
OK, oh wise one, how do you get the strikethrough font? I have selected text before, and then after the save, the strikethrough is gone. What sacrifice is necessary for this knowledge master?
First finish the word AND create the next word (without touching the strike through icon) so the text editor "knows" you are finished with the word you want to eventually strike through. Then highlight the word you want to strike through and click the strike through icon. Then click somewhere else in the text to let the editor know you are done with your strike through, thus removing the highlight and the last text editor instructions from the editor memory.
It took me many moons to figure it out. Of course, I am over 50. :>)
OK, so I type a word, and then go on and type the next word.
I am only nearing 50, great master. I hope that this grasshoppa will prove to be a worthy student as I depress the save radio button.
Huh. Fail. I can see the second occurrence of the word "type" with the strikethrough, but when I submit it doesn't show up. I even tried turning of rich text. Your Kung Fu is strong.....
I am impressed. Lousy $35 million ? The end is near...
Did they say exactly which bank had dipped into the Fed honey hole? I'd bet it was that nasty Anglo Irish Bank - they've got some real issues there.
...or Barclays, or RBS, or DB, or UBS, or BNP, or SG, or Santander, or....????