As ECB's Stark Warns Contagion Has Spread To Euro Core, Bank Cash Parked With ECB Soars At Fastest Rate In Years

Tyler Durden's picture

The Germans at the ECB, which just refuse to die, have been let out of the cage, and are making loud statements. ECB policymaker Juergen Stark warned on Monday the sovereign debt crisis had spread from the euro zone's periphery to its core economies and was affecting economies outside of Europe, according to Reuters. "These are very challenging times... The sovereign debt crisis has re-intensified and is now spreading over to other countries including so-called core countries. This is a new phenomenon," Stark said in a speech to Ireland's Institute of International and European Affairs in Dublin. "The sovereign debt crisis is not only concentrated in Europe, most advanced economies are facing serious problems with their public debt." Naturally this is not news to anyone, and certainly not to European banks, which have seen their deposits with the ECB (or a safe haven for any cash within the European interbank system) rise at the fastest rate in years, if not ever, since the last MRO. It has taken just 11 days to go from €73 billion on November 8, post the most recent LT liquidity operation, to €237 billion. We expect the total to surpass the two years high of €300 billion in under 5 days.

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Spooky Polish's picture

What EUR/USD about it guys ?



Fish Gone Bad's picture

Does anyone know why the chart has a saw tooth pattern?  Did the banks all of a sudden want their cash back, or was the money just spent?

Tijuana Donkey Show's picture

And the winner is..... Goldman!

SheepDog-One's picture

Yea but its 'winning' as in 'Who can kill all the Golden Geese first'...after youve killed them all theres nothing left.

Spastica Rex's picture

After the parasite consumes the host, well... no other planet to "infect" as far as I can see.

LeBalance's picture

there is a scene in Dune in which Leto Atreides is tested to see if he is a conscious human being or an animal and should be put down.  His hand is placed inside a box that creates the illusion of burning (incineration in fact).  This is explained to him.  A needle knife is placed next to his neck and he is told that if his is able to understand the "reality" of the situation "that the box is an illusion" he will leave his hand in and live, but if he is an animal his instincts will take over and he will die.

The human race is supposedly a conscious one, but does it conduct its business on its only home world in such a fashion. >At any scale of action?<

Does Congress deny the teeming masses? (population overload, animal behavior, irresponsibility encouraged/fomented).

Is constraception the dominant policy? (population overload: death of the race).

Is nuclear energy and weaponry anathema? (destruction of food supply and human fertility: death of the race)

Does every man, woman, and child understand the exponential function?

There are many more analogies like those above pertaining to use of resources, etc, etc.


I would say the human race is not a consciously planning entity.  Maybe there will be consequences to that lack of forethought.

Spastica Rex's picture

I've been trying to figure out how to phrase a response, but I'm not going to do very well. Here goes:

I think this issue of human vs. animal response is at the core of what we see around us. However, it's not an issue of individual expressions of humanity. The human social organism - the hive - is increasingly unable to express those better qualities possessed by (some) individual human minds. The larger the social organism grows, the more unconcious it becomes.

Oh regional Indian's picture

With due apologies to yoru avaatar, I think we are more at a Jason and the Golden Fleecing moment.

Only it's Jamie and the Goldman Fleecing.

really, it won't hurt and take just a second.....

Heh and it looks like the 4th R could only be kept down so long eh? WIth the Sexy Coburgs as their royal's all rather hilarious.

Europe is being herded by a nasty sheep-hund!



SheepDog-One's picture

Theyve killed faith in the system, without that theyve got nothing to fleece at all. Theyre going to steal everyones bonds? Loot the treasuries? Then what?

Spastica Rex's picture

Oh, I think there is plenty of faith left. Hope springs eternal.

Hugh_Jorgan's picture

Yep it is called denial. Humans are really good at playing make-believe, and the Banksters are happy to oblige.

Oh regional Indian's picture

It's wipe-out time SD1. Big wave building. Where you and I see a receding sea, people see an expanded beach. Hey, what's wrong with two springs in the same year, heh? Heck Yeah! 

So we are running away to high ground from the expanding beach and the sheep are running into a soon to come roaring back tsunami.

Such is how I see it.



And check this out... relationships...

See the second image especially...


Spastica Rex's picture

I know you see imminent phase transition. I don't disagree, I just don't think anybody knows what the time scale is. "Imminent" could be today, or it could be many years away.

Oh regional Indian's picture

Hey SR, serious question.... do you feel the pace of your life is increasing or decreasing, on a month to month basis? What about those of people around you? Faster or slower? 

How did 2011 passing go for you so far? 

For me, time is flying.....or am I all sped up? And yet, all I do is sit. 

It's time to put the capstone on the Pyramid. And the capstone is sitting in plain view for the world to see. If you have the eyes to see and all that sort of thing. ;-)


Spastica Rex's picture

Serious answer:

I find myself at 46 years old with my mind usually stuck somewhere in the past. In a way, time almost feels like it has stopped for me personally, but continues on around me like a movie. I think that's a symptom of derealization.

Crazy - truly gone fishing?

Hugh_Jorgan's picture

Agreed. But every year we live, makes a year shorter in comparison to the length of time we've been alive. So it follows that a year seems shorter as we get older. I think that middle age is when many people really start to notice this, they are more aware because they know that they have pretty much crossed the halfway mark.

Oh regional Indian's picture

Precisely. Something is changing, and that thing is changing fast!

So many aspects to it. The Cell phone addiction is the most obvious symptom.

Arctic Eskimoes saying the Sun has never risen from wehre it is rising now. Not in all their spoken history. Not in their life-times of intense sun observation. The winds have shifted it seems. I'll winds are blowing and good winds have reduced drastically.

old Eskimo tales?

I don't think so.


Theta_Burn's picture

Prophetic with that reply Tijuana, let me help as visions from afar can be blurry

And the winner is

Any 1 of these daily headlines just 2 years ago would have caused a meltdown, how did the system get so numb?

Maybe the term "Green Shoots"should be revived.ahh the good ole days....


holdbuysell's picture

What was driving the deposit facility ramp three times prior to the current ramp?

Oh regional Indian's picture

Another never investigated stinker. Why was the UK the largest buyer of T-Bills (National Buyer that is) this last half year or more? It's splitting at the seams internally, cutting services for it's welfare addled population left and right OF center. Sscandal torn, broke on the surface UK buying US Bonds, hand over fist?

And what the shit is India, teetering on the brink of 25% real inflation, doing lending billions to the IMF SDR facility? BIS man in India says 85 cents a day is living wage in a big Indian Metro and then tries to defend it. No shame.

Once you see past the thin veneer, it all becomes quite clear. 

We are getting to see the innards of the longest running financial scam, ever. It's present form being spawned from Venice.

If you see the soft point in the underbelly, stab it.


HD's picture

Just a little lesson. If it's gangrene you have to cut it off before it spreads and kills you. Unsustainable debt and intervention are no different.

SheepDog-One's picture

Yep and theres a lot of limbs around that are way south of Limburgher.

Global Hunter's picture

I'm picking hairs, but one can't default or write down gangrene, but I think your analogy is appropriate.

SheepDog-One's picture

'Default or write down'...someone still has to pay for that.

put_peter's picture

Ok... this is where the Greeks have put the money.

cossack55's picture

The Athens Pandemic. Now, someone write the novel, please.

Spooky Polish's picture

Yeap just like Hemingway fucking Greenaway rough 

surrealistic porn wersion of "Old Man and the Sea" .

Except there's no sea ,

and whale gapes old man's ass


excues for my english ofc 

Global Hunter's picture

The sovereign debt crisis has re-intensified and is now spreading over to other countries including so-called core countries. This is a new phenomenon," Stark said

Obviously he doesn't read ZH or else he would have been aware of this "phenomenon" some time ago.

oogs66's picture

yes, every one of their plans has spread contagion rather than fixing it!

Spooky Polish's picture

Yeap , but i can't belive they are missinformed ... so then? 

aleph0's picture

Pleeease don't send him a link .. he might close us down.

rambler6421's picture

Contagion bitchez!

drivenZ's picture

In the middle of this complete fiasco, I'd just like to remind everyone not to worry...Global Funds has your back. Forget Gold, just plow your $$ into their new(as of last month) Social Media ETF and forget about it.




Stumpy's picture

I must admit that GlobalX have very innovative products.

GeneMarchbanks's picture

Internet Penetration indeed.

Belarusian Bull's picture

Brilliant find! Going to sell all my silver and invest in this ETF. What could possibly go wrong? And who even needs those barbaric relics anyway? Cos, you know, you can't eat silver, right?

buzzsaw99's picture

Spreading, that's funny. Gee, everywhere I look I find rot, the rot must be spreading. LMAO!

Gief Gold Plox's picture

ECB should just pull an MFGlobal stunt and use all the parked cash to lever up the EFSF and then relase a public statement consisting only of: Got gold Bitches?

buckethead's picture

My exact thought as I read the essay.


The new normal.

SheepDog-One's picture

'Got the OTHER precious metals'?

JungleJim's picture

And down in the cellar, Uncle Otto is mounting the ZF back on the Kar-98 .....

MFL8240's picture

Placing money with the ECB is safe?  This is as funny as the dollar and US treauries are safe havens.  

TeamDepends's picture

(voice of Phil Hartman)

WARNING:  Taking Plucrapterol TM as directed may or may not help with your depression.  Possible side-effects include, but are not limited to, the following:  Blood clots, amnesia, delusions of grandeur, mysterious tattoos and/or bruising, hyper promiscuity, syphilis, bankruptcy, pizza face, taint burn, loss of friends, inability to face the facts, dizziness, inability to face the truth, projectile vomiting, liver failure, instantaneous hair loss, schizophrenia, catastrophic flatulence, whiskey dick, tennis elbow, eye pop, angry heart, irritable bowel syndrome, rebellious bowel syndrome, accellerated decrepitude, loss of appetite, gluttony, catatonia, alcoholism, malaria, sleep walking, sleep driving, acute ennui, aneurysm, explosive diarrhea, gangrene, gender confusion, migraines, worship of numbers, mistaking the car for a dog, and sudden death.  Results may vary.

GeneMarchbanks's picture


'acute ennui' say that five times fast.

monopoly's picture

Must be a good interest rate. What a mess we are in.

mayhem_korner's picture



Except maybe in Australia and a few other "austere" places, the world hasn't seen a "good" interest rate in some time.  And so we get what we get.

Notice the increasing slope in each of those superimposed up-arrows?  That is ominous.

oogs66's picture

is all this cash being lent to the ECB how they sterilize stuff? 

tim73's picture

Financial warfare by New York and London banksters. Except for Greece NONE of the eurozone countries are as fucked up financially as USA or UK. Now that so called "supercommittee" cannot even agree on anything so USA will just print money more for banksters until the all out collapse comes. Meaning more financial warfare targeted especially against eurozone.

We should cut out these two leeches out of the circulation here in Europe. London should be first to go, fucking quarantee that stupid island.

Börjesson's picture

Didn't Jürgen Stark resign from the ECB a while back?