LTRO

Phoenix Capital Research's picture

The EU: a 46 Trillion Euro Lehman Brothers?





Europe's banking system is 46 Trillon Euros in size and leveraged at 26 to 1. Lehman was leveraged at 30 to 1 when it imploded. 

 
Tyler Durden's picture

2012 Redux - They Really Don't Know What They Are Doing





The insolvent remain insolvent, the money still not money, and the recovery something else entirely. Central banks possess no recovery magic; they can’t even deliver their own version of one.

 
Reggie Middleton's picture

So Called "Trusted Parties", Bank Collapse, the ECB and Blockchains: Watch as I Call the Next Bear Stearns, Again!





I called it once in January 2008 (Bear). I called it 2x in March 2008 (Lehman), and I'm calling it again in 2016. Don't say you didn't know. These proclamations of trust will truly put my analysis - and your capital - to the test.

 
Tyler Durden's picture

Now We Know Why the ECB Panicked





The ECB panicked. Not only did QE fail to ignite inflation, the second order indications, modeled or real, suggest the real economy is in much, much worse shape than thought just a few months ago. The timing is not coincidental, as again there was a palpable global change starting around mid-year last year, cemented by the events of August and now January.

 
Tyler Durden's picture

One Hedge Funds Warns The Market Will (Again) Be Sharply Disappointed By The ECB





Market discounting ECB to intervene boldly, via a combination of increased QE, LTRO, depo rate cut, without collateral damage caused on banks by deeply negative interest rates. As banks performed strongly in recent days, market may think the recent complaining about negative rates by top banks’ executives across Europe has been heard.  On the contrary, we believe deeply negative rates are coming, and are an inescapable negative for the banking sector, leading to overall weak equity markets post ECB.

 
Tyler Durden's picture

Deutsche Bank Flip Flops, Now Begs For Central Bank Intervention And Ideally More QE





So there you have it: Please no more easing, but only if easing means NIRP. As everyone has seen by now, more NIRP means a collapse in DB risk assets. But if "no more easing" means "even more QE", then go for it. And just like that we are back to square minus one, where central banks are called upon to fix the mess that central banks made, while holding banks and their flip-flopping "analysts" (and year end bonus paychecks) hostage.

 
Tyler Durden's picture

F(r)actions Of Gold





If the eurodollar and wholesale banking system had been sliced to such a thin margin again by 2011 so as to so heavily depend on the modern duality of gold, it not only would not survive it literally could not survive. The paper dilution we see now may just be that judgement finally seeking open admission.

 
Tyler Durden's picture

700 Days In No Man's Land - Why They Can't Keep It Up





The global economy has had its artificial boom and CapEx frenzy already and years of deflationary liquidation and correction lie ahead. Money printing has failed. Any effort by the central banks to double down on another $20 trillion of bond purchases would blow the world’s financial casinos sky high. Contemporary central bankers function like a team of monetary wranglers, herding the retail cattle toward the asset gathers. At the end of the day, the asset gathers will profoundly regret what they are clamoring for.

 
Tyler Durden's picture

The Mindless Stupidity Of Negative Interest Rates





"...pushing rates into negative territory works in many ways just like a regular decline in interest rates that we’re all used to." That’s false - Negative interest rate proponents ignore the basic tenets of double entry accounting. We know that it is categorically false the negative rates are working in Europe. So what has happened to European bank deposits since the ECB instituted negative rates? They have shrunken. Has one single mainstream economist or proponent of negative rates mentioned that, ever? I suspect not. But facts have a way of eluding mainstream economists and central bankers.

 
Tyler Durden's picture

Stocks, Futures Soar As Europe Joins Japan In Deflation, Surge Driven By Hopes For More Japan, ECB QE





Terrible economic news is wonderful news for markets, all over again, and with the worst S&P500 quarter since 2011 set to close today, some horribly "great" news is just what the window-dressing hedge funds, most of whom are deeply underperforming the broader market (not to mention Dennis Gartman) ordered.

 
Tyler Durden's picture

Recession Odds Surge To 47%, Highest Since 2011





Assuming that after being wrong for 7 years about everything, economists are actually right about the market still having some discounting abilities left, what then is the market telegraphing? The answer, according to the Bank of America: the biggest surge in recessionary odds since 2011, which over the past few days have nearly hit a 50% probability of an economic slowdown.

 
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