Revisit FRBNY FX Swaps, ECB And Margin Credit

CalibratedConfidence's picture

Here are some updated charts regarding the US FED bailout of Europe and a couple charts regarding US Margin Credit, Investor Net-Worth according to NYX-data and Money Market Fund levels (spoiler alert: retail is a dead horse)

On February 9th Zerohedge broke the news that the FED is now directly injecting Dollars into subsidiaries of foreign banks.  Remember, this "Euro Bailout" was something Chairsatan promised Congress he wouldn't do, according to Senator Bob Corker who was in on the specific meeting being referenced (more info here).

Without the H.8 information, CNBC infotainment channels and slide-show CPM websites could easily mistake the data in the following charts as balance sheet stress, economic pressures, and financial industry health in Europe is improving.  To the contrary, it's so bad that freebasing USD isn't doing the trick, it's time for direct injections into the blood stream (subsidiary bank injections) as opposed to using the entity created specifically for the purpose of reducing the re-emergence of financial strains in short funding (FRBNY FX Swaps purpose listed at top).

 

Part A

FRBNY FX Liquidity Swaps

 

 

ECB Daily Liquidity Condition

Via ECB

"The liquidity needs of the banking system result from the minimum reserve requirements imposed on euro area credit institutions and from autonomous factors, which are normally beyond the direct control of the ECB. Such factors can be banknotes in circulation and government deposits with some national central banks."

 

 

 

The day-to-day change in the Current Account and Deposit Facility has become more stable:


 

 

Part B

As for the "retail driven" rally...


 

 

As for the US investors, even with the constant injection of money into the system to prop up asset prices, they are utilizing MOAR margin creditWith SPY closing on its high (note: Free Credit Cash Accounts increase was roughly 29%, the largest in 7 years):


 

 

Addressing Net-Worth or the lack thereof...