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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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Mon, 11/21/2011 - 10:04 | 1898141 Spooky Polish
Spooky Polish's picture

What EUR/USD about it guys ?



Mon, 11/21/2011 - 11:06 | 1898418 Fish Gone Bad
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?

Mon, 11/21/2011 - 10:05 | 1898142 Tijuana Donkey Show
Tijuana Donkey Show's picture

And the winner is..... Goldman!

Mon, 11/21/2011 - 10:13 | 1898177 SheepDog-One
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.

Mon, 11/21/2011 - 10:34 | 1898279 Spastica Rex
Spastica Rex's picture

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

Mon, 11/21/2011 - 11:05 | 1898389 LeBalance
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.

Mon, 11/21/2011 - 11:30 | 1898533 Spastica Rex
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.

Mon, 11/21/2011 - 10:36 | 1898282 Oh regional Indian
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!



Mon, 11/21/2011 - 10:42 | 1898303 SheepDog-One
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?

Mon, 11/21/2011 - 10:47 | 1898319 Spastica Rex
Spastica Rex's picture

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

Mon, 11/21/2011 - 11:32 | 1898544 Hugh_Jorgan
Hugh_Jorgan's picture

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

Mon, 11/21/2011 - 10:55 | 1898360 Oh regional Indian
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...


Mon, 11/21/2011 - 11:00 | 1898382 Spastica Rex
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.

Mon, 11/21/2011 - 11:12 | 1898442 Oh regional Indian
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. ;-)


Mon, 11/21/2011 - 11:21 | 1898487 Spastica Rex
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?

Mon, 11/21/2011 - 11:21 | 1898488 SheepDog-One
SheepDog-One's picture

Way Faster.

Mon, 11/21/2011 - 11:43 | 1898582 Hugh_Jorgan
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.

Mon, 11/21/2011 - 12:12 | 1898699 Oh regional Indian
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.


Mon, 11/21/2011 - 10:18 | 1898205 Theta_Burn
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....


Mon, 11/21/2011 - 10:08 | 1898147 holdbuysell
holdbuysell's picture

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

Mon, 11/21/2011 - 10:50 | 1898334 Oh regional Indian
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.


Mon, 11/21/2011 - 10:08 | 1898152 HD
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.

Mon, 11/21/2011 - 10:11 | 1898168 SheepDog-One
SheepDog-One's picture

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

Mon, 11/21/2011 - 10:12 | 1898171 Global Hunter
Global Hunter's picture

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

Mon, 11/21/2011 - 10:14 | 1898182 SheepDog-One
SheepDog-One's picture

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

Mon, 11/21/2011 - 10:10 | 1898162 put_peter
put_peter's picture

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

Mon, 11/21/2011 - 10:10 | 1898163 cossack55
cossack55's picture

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

Mon, 11/21/2011 - 10:18 | 1898204 Spooky Polish
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 

Mon, 11/21/2011 - 10:10 | 1898165 Global Hunter
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.

Mon, 11/21/2011 - 10:18 | 1898201 oogs66
oogs66's picture

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

Mon, 11/21/2011 - 10:21 | 1898214 Spooky Polish
Spooky Polish's picture

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

Mon, 11/21/2011 - 10:34 | 1898273 aleph0
aleph0's picture

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

Mon, 11/21/2011 - 10:12 | 1898176 rambler6421
rambler6421's picture

Contagion bitchez!

Mon, 11/21/2011 - 10:13 | 1898180 drivenZ
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.




Mon, 11/21/2011 - 10:22 | 1898217 Stumpy
Stumpy's picture

I must admit that GlobalX have very innovative products.

Mon, 11/21/2011 - 10:27 | 1898240 GeneMarchbanks
GeneMarchbanks's picture

Internet Penetration indeed.

Mon, 11/21/2011 - 10:31 | 1898259 Belarusian Bull
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?

Mon, 11/21/2011 - 10:14 | 1898183 buzzsaw99
buzzsaw99's picture

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

Mon, 11/21/2011 - 10:14 | 1898184 Gief Gold Plox
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?

Mon, 11/21/2011 - 10:26 | 1898233 buckethead
buckethead's picture

My exact thought as I read the essay.


The new normal.

Mon, 11/21/2011 - 10:43 | 1898305 SheepDog-One
SheepDog-One's picture

'Got the OTHER precious metals'?

Mon, 11/21/2011 - 10:55 | 1898361 JungleJim
JungleJim's picture

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

Mon, 11/21/2011 - 10:15 | 1898187 MFL8240
MFL8240's picture

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

Mon, 11/21/2011 - 10:15 | 1898189 TeamDepends
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.

Mon, 11/21/2011 - 10:25 | 1898230 GeneMarchbanks
GeneMarchbanks's picture


'acute ennui' say that five times fast.

Mon, 11/21/2011 - 10:16 | 1898192 monopoly
monopoly's picture

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

Mon, 11/21/2011 - 10:26 | 1898232 mayhem_korner
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.

Mon, 11/21/2011 - 10:17 | 1898193 oogs66
oogs66's picture

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

Mon, 11/21/2011 - 10:21 | 1898206 tim73
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.

Mon, 11/21/2011 - 10:21 | 1898215 Börjesson
Börjesson's picture

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

Mon, 11/21/2011 - 10:25 | 1898228 Spooky Polish
Spooky Polish's picture

He tried,

but he's tied 

to his burning chair 

try tu run - if you dare 


[excuse my english]

Mon, 11/21/2011 - 10:25 | 1898231 kito
kito's picture

man, and i thought bird flu was bad!!!!!

Mon, 11/21/2011 - 10:30 | 1898257 buckethead
buckethead's picture

Bird flown.

Mon, 11/21/2011 - 10:27 | 1898239 Kilgore Trout
Kilgore Trout's picture

Stark... Stark... Ok, is this Iron Man or his father?

Mon, 11/21/2011 - 10:29 | 1898252 RobotTrader
RobotTrader's picture

As usual, "hard asset" plays are getting bombed

Everyone and their brother fleeing into U.S. "paper"

Bernanke needs to triple the speed of the printing press in order to take advantage of these 50-year low interest rates and the biggest bond rally in world history

Mon, 11/21/2011 - 10:34 | 1898278 Tsar Pointless
Tsar Pointless's picture

The Weimar States of Zimbabwe.

Gotta admit - it has a nice ring to it.

Mon, 11/21/2011 - 10:55 | 1898356 Spooky Polish
Spooky Polish's picture

With banana eating black eagle with red hat 

"Neue Bananishe Rebublik"

NBR sound nice 


[excuse my eng , and everything else]

Mon, 11/21/2011 - 10:36 | 1898284 tim73
tim73's picture

Yes, this is all so pathetic. Yields are below inflation rate for money printing UK and USA. Most of that shiny new money printed and used to reload banks in 2008-2009 went into this bullshit speculation game. How long they can continue this market freak circus, based on mark-to-Alice-in-Wonderland values, before both currencies collapse...

Mon, 11/21/2011 - 10:39 | 1898293 SheepDog-One
SheepDog-One's picture

And paper is worth nothing except whatever someone else says its worth....only takes a second for paper to burn to ash.

Mon, 11/21/2011 - 10:31 | 1898262 integrale
integrale's picture

...and Libor has started to go parabolic (check out the nice convex curve since last week):

Expect futures to invert in the next month as current rates top 1%

Mon, 11/21/2011 - 10:41 | 1898265 GoodMorningMr.V...
GoodMorningMr.VanRumpoy...'s picture

Don't know why the media and other members of Euro-zone think Germany will let the ECB become an unlimited community bailout fund.

Germany joined the Euro so it could sell it's manufactured goods cheap to the peripherals countries and get them hooked.

At the bargaining  table right now, the profligate countrys believing their is some sort of common Euro state  and that  ECB is community  organization are demanding  something that amounts to inflation.

Germany response: to demand to take over Europe by having veto power over individuals countries budget. (fiscal control which is effectively absolute control of the countries.) or the Euro dies. ECB in Germany, is Germany.

Because Germany wins even if the EURO collapses. Being that  Germany is one of the only countries that’s  part of the club that produces some real wealth. They could just keep all their old debts denominated in Euro, which the new Deutsch market would rapidly appreciate against.

Once the other countries get their monetary policy back they will fall to political pressure from the electorate, massively print out money for the citizens to maintain their life style and buying German goods.

Mon, 11/21/2011 - 10:36 | 1898281 aleph0
aleph0's picture



Could gold-backed bonds be the answer to the eurozone crisis?


Pleeease go ahead  ... 33% Gold backing puts the  REAL Gold price @ $5,000+



Mon, 11/21/2011 - 10:44 | 1898309 Jim in MN
Jim in MN's picture

Kind of a weird site, but I just wanted to grab a nice chart of the Dow:Gold ratio...even better because it just predates the current crisis.

Third chart down.  1:1 @ 5,000 seems like a good call. 

Mon, 11/21/2011 - 10:36 | 1898285 jcaz
jcaz's picture

They think they're safe in cash?   That's so cute......

Mon, 11/21/2011 - 10:40 | 1898297 SheepDog-One
SheepDog-One's picture

Like babes in the woods, tender for slaughter.

Mon, 11/21/2011 - 10:38 | 1898287 Jim in MN
Jim in MN's picture

And in the 'well, duh' category:

Tokyo stocks hit year's new low

Stock prices in Tokyo hit a new low for the year on Monday amid growing uncertainty about Europe's financial turmoil.

Mon, 11/21/2011 - 10:45 | 1898312 SheepDog-One
SheepDog-One's picture

This is all just the convulsions before the real end game, all out world war.

Mon, 11/21/2011 - 10:45 | 1898313 Bansters-in-my-...
Bansters-in-my- feces's picture

I wondered why

gold got knocked down $25 and silver $1.25 in overnight markets

They both are on the come back already though.

When are those Option Expiry's again....?

Ps.Fuck You's PPT.

Mon, 11/21/2011 - 10:47 | 1898320 Kina
Kina's picture

Ps.Fuck You's PPT.


And also corrupt CFTC.

Mon, 11/21/2011 - 10:51 | 1898341 Bansters-in-my-...
Bansters-in-my- feces's picture

"This is a new phenomenon" Stark said.

I call Bull Fucking Shit.

They are all just getting caught by having the light shone on the cockroaches.

Lying, Thieving,Cheating banksters.

The fucking gigs up.

Mon, 11/21/2011 - 11:37 | 1898568 Georgesblog
Georgesblog's picture

Corporate consolidation always involves an implosion. Predators cripple the legs, before they go for the throat.

Mon, 11/21/2011 - 11:50 | 1898608 mberry8870
mberry8870's picture

I think we call that risk off.

Mon, 11/21/2011 - 23:36 | 1901252 integrale
integrale's picture

Uh, this is a typo, right?  ECB is reporting $237B as the outstanding balance on their lending facility and $25B as the balance in the deposit facility as of 11/27 @11pm new york time... Even if you switch those numbers, that's a SHOCKING balance in the lending facility (higher than any time in 2008).  Can we get a confirmation???

Either hang on to your hats for a banking bloodbath or some ECB webmaster is about to get sacked.

Mon, 11/21/2011 - 23:40 | 1901261 integrale
integrale's picture

Update:  yup, typo.  Sack the webmaster.  The numbers are switched, except the "deposit facility" is the "net liquidity effect."

Do NOT follow this link or you will be banned from the site!