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Charting A Perfectly Healthy European Liquidity Freeze
An artist's rendering of what a Merkozy statement on the chart below would be like: "Here you have a chart depicting a perfectly healthy liquidity freeze and a far better than expected interbank bank run. While the amount of money desperately dumped with the ECB is the highest in over 16 months at €269 billion, a very modest increase of €230 billion from the summer lows, we promise promptly, or by December 31, 2099, whichever comes last, to conceive of a plan which will address the subject of how to plan for the public's interpretation of this chart, and in the meantime promise to bend the laws of mathematics, thermodynamics, rhetoric, and money printing, and plug the inverse hole with nothing but even more promises. Please vote for us." Or something like that. To everyone else who likes it non-sugarcoated, there is now open panic in the Eurobank system, where not a single euro left outside the clutches of the ECB is deemed safe. In other news, all is well.
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How much was in there to the "best" Lehman times?
I would also be curious to see a few year chart.
You can look further back on the deposit facility on bloomberg if you really want to.
http://www.bloomberg.com/quote/ECBLDEPO:IND/chart
+1 Better than Fips' link.
Was a bit of a pain to find it on ecb.int -- but here is 2000-2011
http://s14.directupload.net/images/111011/fc4idnyq.png
Mountain.Of.Feces.
Fear, it's the new normal.
Watching the LIBOR go up in a straight line since August has left me with a couple questions.
How reliable is a line that looks like it was drawn with a ruler? Rumors are the the LIBOR rate is now highly manipulated so as to keep the sheep placid.
If it is fiction why draw such an unnatural looking increase? When the BLS does their creative writing exercises they at least make it creative, up a little here down a bit, mix it up. What's behind a upward trend line that looks like it was drawn by a 3rd grader?
Because it was drawn by someone with a third grade mentality.
Me = cinetic energy
Them = political immobilism corpus m
Rules = movement quantity conservation law
Who wins?
Who wins? GS. as usual.
good for another 120 pt 4 day face ripper
Nearly hitting escape velocity.
Another 300 points rally on dow!
All they need do is QE and we go vertical.
There is an absolute mountain of liquidity in the system, not enough to plug the insolvency but once insolvency is effectively taken off the table as a resolution, that liquidity WILL find its way into prices.
NOBODY is going to tighten, the only tightening will be involuntary via default, if that is mitigated via QE, up we go.
That is what i am counting on.
But i believe the liquidity mountain can be managed better than that.
Don't panic!
http://thumbs4.ebaystatic.com/m/mVXZ30TTqZJmzbPTqBjC2JQ/96.jpg
The chart would give us better perspective if it went back to '07
Well why dont you make the chart and link it here then.
As a goldbug who had expected exactly this European bank liquidity crisis, I had nevertheless expected that such an event would send PM up, as banks attempts to reduce counter party risk. In reality gold and silver prices are staying stationary. Could any wise person explain why it is so? Thanks.
Manipulation by JPM, the CME group and all the usual suspects is the reason why PMs dropped in Sept, and are now stationary
Of course there was. Without free money from the Federal Reserve, they now need to steal from the working class to survive. Dimon and his group are dogshit and as much as I disagree with the Obama led march on Wall Street, I would love to see him amd Blankfield ripped from their offices and tried for crimes against America out in the streets. These two companies are the shit of the planet and I am all for capitalism but, not manipulation and fraud.
Sorry charlie, you have it wrong. The new safe haven is the printed US confetti, Gold is considered a risky assett by the TRIBE. Never heard of such bullshit but, they convinced the media that this is the new game, depite 5000 years of history. Soon we will wittness a collapse of the US traesury market and then all the lies from the tribe will be exposed.
The US police state is without a doubt, the most courrpt financial market on the planet. I trust Russian and China is more transparent and honest than this group of shit on Wall Street.
The real safe haven- Remote land, guns, ammo, etc...sad to say the land has to be outside of the USA.
OddField you should have listened to me here ages ago as I said you better have a tough gut to stick out what they would do to anyone buying anything of value and NOT their worthless paper.
This is clearly bullish~!
This IS actually bullish - on a short horizon anyway. Last friday the ECB effectively fixed the short term liquidity problem by extending unlimited collateral swaps with all euro banks for 12&13mo LTRO's. It's not printing but opens the door to monetization (they could be extended indefinately?) down the road. This quick shot of Heroin keeps the junkies open for the time being while they try to fix the real problem: broke countries. Looks like a simple game plan to keep the banks on life support while they address the insolvent sovereign debt. On a long horizon these guys are f*cked but in the short run some market worry has been alleviated and more sheep are brought into the slaughter pens.
Got gold?
Excellent take on it. I do believe we are in market phases that judge the 'long term' in a 48 hour time frame.
How much longer with this soga? This shit is getting real old!
The higher the blue line on the chart, the more they're succeeding!
Growth is good.
this whole 'liquidity' construct is way too complicated for conceptually challenged folk such as myself to grasp...
I have a couple of sheep surplus to my needs at the moment...I'm open to offers for them.
You have a 'liquidity' problem at the moment you say, but the fundamentals of your trading position are strong....how quickly can I deliver my sheep to your pen you ask?
Give me zee gold. Then arrange your own transport, moron.
That how they planned it, 'Baffle em with Bullshit' economic model. Even a CHILD could tell you that if you just draw numbers on a piece of paper, its just imagination.
Excuse me if I'm wrong but I think i searched for the historical chart and these levels are above that of 07 if not very close. I know indavidual banks deffinitely are up at those levels including the big names however as for the deposit facility I am not sure. If someone has a chart or more info post because it is important to know where we stand historically.
Hmmm yes liquidity cant flow...well cant they just promise more imaginary liquidity will be printed from nothing? I mean, that IS our reality today, complete imaginary fraud which everyone says- 'Meh...well if ya cant beat em, JOIN em'!! Just move the decimal point to the right as we speed past Full Retardville!
I think you're onto something. We could save a lot of time and energy by just painting a '0' after the value number on every single piece of fiat paper across the globe.
On a long enough time horizon the balance of everybody's checking account drops to zero.
Awesome.
I don't see the problem. Exceeding the upside target in ECB Deposit and Marginal Lending Facility, as denoted by the large blue line has to be the new killing it.
I mean the fact that Merkel wanted to cancel the press conference on Sunday because she viewed the talks with Sarkozy as a complete failure (ie there was no agreement reached or REACHABLE), shouldn't bother anyone. After all the spin on an agreement to agree if terms agreeable, allowed a 3% rally yesterday.
Trichet needs an enema in order to allieviate the bloating. Bernanke, too.
Tyler, expect it to be cut in half tomorrow, as today is the last day of the reserve maintenence period. See:
http://www.ecb.int/press/pr/date/2009/html/pr090529.en.html
But nevertheless it is still in an up trend.
http://www.ecb.int/press/pr/date/2011/html/pr111011.en.html
"We've got our tentacle porn all up in Greece's business and are given 'em the business" - IMF+ECB
- Our program to mark each Greek with a barcode indicating fitness criterion is moving along briskly.
- No signs of Drachma.
- Remember to bring more barrels...there's a line forming.
Ladies and Gentlemen, we have decided to accept ego as collateral. This will allow Sarkozy and France to contribute the remainder of the 2 trillion zooro required to fund the EFSF based on a loan from the IMF and ECB. Those relying on Merkel's backbone will take significant haircuts (as will the Germans) others may see political careers considerably shortened. Film at 11.
According to the paper here, some 75 Billion is from RABO alone. Corporates and pension funds all drop their cash with the still AAA-rated bank.
So that is money not parked with other banks.
i don't know whether to laugh or cry!
methinkz the ECB as a "CB" is here to stay!
everything is rosy b/c:
"bad banks" being "spun off" to "sovereigns" + the other parts being "absorbered by other players in the system" = recapitalization of the banking system?
at the expense of degrading the sovereigns who have obligations to their PEOPLE, not just the fuking rent-collectors and the military-industrial fascist overlords? ...as plans continue to surface as to wtf the different interests involved should do next, and why?
think 25 dead for "religious reasons" in egypt (possibly by remote-controlled armored vehicles) as TPTB propaganda for the weekend, and continue to think for yourself and take control of your own life
think of the 200 armed & masked men invading a mosque in tripoli, sealing off the perimeter and stealing holy relics = an entire crack commando company as TPTB weekend propaganda
think flip-flops in The Arab Fall
concentrate on eur-usa and money; don't think about the MENA battlefields and perpetual false flag olympic games, BiCheZ! how about this? the prime ministers of france and belgium deciding what to do with the dexia conglomerate was pretty good TPTB propaganda too!
what a professional chop-shop for stolen luxury financial vehicles! and we thought the USA was good?
cash, PMs, supplies, and individuality, BiCheZ!
the collectivities are legion