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Europe Facts, Not Fiction: Usage Of ECB Deposit Facility Goes Parabolic, Sov CDS Wider Across The Board

Tyler Durden's picture




 

While the market continues to trade purely on rumor, counter-rumor and refutation of a refutation, the facts demonstrate that Europe is ugly and getting worse. Today's now daily update focuses on continuing deterioration in both liquidity and solvency. First, the usage of the ECB Deposit Facility soared to €198 billion on Monday from €182 billion on Friday. This is a massive €118 billion increase in the past month alone. As the chart below demonstrates, a good word to describe the chart is parabolic. Furthermore, USD Libor continues to rise and has now risen nearly 40 days in a row. While not nearly parabolic, it is time to shift attention away from Credit Agricole, which is still the most "funding challenged", and focus on CSFB which once again rose by 0.01%, and threatens to overtake the troubled French bank in pole position. Time to refocus the shorts from France to Switzerland? Lastly, the CDS are ugly across the board.

ECB Deposit Facility usage:

Libor rate:

And CDS:

Germany    87.5    +1.75
France    197    +7.75
Greece    Irrellevant
Ireland    907.5    -5
Belgium    292.25    -2.75
Denmark    133    +3
Norway    49.25    +0.25
Spain    430    0
Sweden    59    +2.25
Holland    97.5    +3.5
Portugal    1230    +15
Austria    155    +3
Finland    80    +2.5
Italy    512    +6.5
UK    86    +3.25
       
      
Portugal Telecom International Finance B.V.    863.7    +53.7
Edison SPA    277.5    +17
ArcelorMittal    580    +16.25
Fortum Oyj    130    +13
UBS AG    235    +12.5
Banco Santander, S.A.    355    +12.5
EDP-Energias de Portugal, S.A.    771.8    +11.8
Commerzbank AG    330    +11.25
Aegon NV    325    +11
Axa    365    +10
BNP Paribas    315    +10
Electricite de France SA    170    +10
Glencore International AG    485    +10
BAE Systems Plc    190    +9.5
Repsol YPF SA    220    +9.5
Total SA    100    +9
Societe Generale SA    440    +7.5
Credit Suisse Group    220    +7.5
Lloyds TSB Bank Plc    385    +7.5

 

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Tue, 09/13/2011 - 09:56 | 1663326 sushi
sushi's picture

Facts like these will never make the FT

Tue, 09/13/2011 - 09:57 | 1663335 markmotive
markmotive's picture

Here's a fact: much of the developed world is near the tipping point for hyperinflation

http://seekingalpha.com/article/293312-hyperinflation-and-the-fiscal-case-for-gold

Tue, 09/13/2011 - 10:13 | 1663406 midtowng
midtowng's picture

How long can the credit markets trade like a worldwide financial meltdown is right around the corner, while the stock markets trade purely on baseless rumors?

It seems that when the stock market finally corrects, it's going to be very ugly.

Meanwhile, the smackdown of gold continues for no particular reason than because it was overbought.

Tue, 09/13/2011 - 10:16 | 1663434 snowball777
snowball777's picture

How deep are your pockets?

Tue, 09/13/2011 - 09:56 | 1663327 ZeroPower
ZeroPower's picture

That Russia buying EZ bonds rumor sure was out of nowhere - the last thing Russia wants, economically and even moreso politically, is a strong Eurozone.

Tue, 09/13/2011 - 09:57 | 1663334 Migrated Bird
Migrated Bird's picture

But the vacuum tubes are not programmed to process images and charts..

Tue, 09/13/2011 - 09:57 | 1663337 Corn1945
Corn1945's picture

Tyler,

What's the next step here, ECB raw monetization?

Tue, 09/13/2011 - 09:59 | 1663343 Racer
Racer's picture

Reality and HFT... like oil and water

Tue, 09/13/2011 - 10:00 | 1663348 john39
john39's picture

and yet the ponzi lumbers on, staggering like a old mean drunk...  when will the death blow land?  getting really tired of this shit.

Tue, 09/13/2011 - 10:00 | 1663349 alien-IQ
alien-IQ's picture

the market, once again, appears to be not only impervious to reality...but rather blissfully ignorant of them.

Euro back above 1.37, USD back below 77 and the /ES over 1160. Life is good in fantasy land.

unbefuckinglievable.

Tue, 09/13/2011 - 10:33 | 1663540 espirit
espirit's picture

Yes it is, A-IQ. We must always remember though that this is a race to the bottom of the pit without stepping off a vertical edge.

Lot's of smoke and mirrors to cloud the way.

Tue, 09/13/2011 - 10:00 | 1663350 oogs66
oogs66's picture

russia and china to the rescue.....who would have thought

Tue, 09/13/2011 - 10:02 | 1663356 ChiefJohnRutledge
ChiefJohnRutledge's picture

All I see from the charts is ze price stabeleeteeee...

Tue, 09/13/2011 - 10:04 | 1663359 Dr. Engali
Dr. Engali's picture

The bank libor chart is a picture perfect cup and handle breakout chart.

Tue, 09/13/2011 - 10:16 | 1663431 mccoyspace
mccoyspace's picture

looks like they could barely bother with the handle in the rush to continue up.

Tue, 09/13/2011 - 10:08 | 1663378 Hedge Hunter
Hedge Hunter's picture

This ECB Deposit Facility graph is transitory. Nothing to see here.... Move along please.

Tue, 09/13/2011 - 10:16 | 1663432 crash_davis
crash_davis's picture

This is just like the end of 2007 and the beginning of 2008 when it became apparent that the subprime market was tanking and it was spilling over into everything else. The market just shut their eyes and pretended that everything was ok. correct me if I'm wrong but the dow hit 14000 well after the cracks appeared in 2007. We are just watching it repeat itself only magnified.

Russia and China saving the day? It's like saying that the problems in subprime are likely to be contained. The ben bernanke.

Tue, 09/13/2011 - 10:31 | 1663530 Corn1945
Corn1945's picture

Eerily similar. Bank CEOs on TV. Nonsensical rumors flying around. Wild gyrations in the market.

Really eery.

Tue, 09/13/2011 - 13:10 | 1664235 ghostfaceinvestah
ghostfaceinvestah's picture

I will never forget it - the secondary mortgage market absolutely seized up in August 2007, but the equity markets didn't peak until October/November.  I couldn't believe it - the mechanism for funding 40% of all mortgages in the country just stopped, and the equity markets kept going up.

Tue, 09/13/2011 - 10:27 | 1663504 citta vritti
citta vritti's picture

so European banks think depositing money overnight with ECB is better than lending it/depositing it overnight with their fellow European banks, providing a useful measure of the distrust among thieves. And the ECB itself is to be trusted?

Tue, 09/13/2011 - 10:29 | 1663514 lieutenantjohnchard
lieutenantjohnchard's picture

remember the european bank stress tests a while back. the fellas said all is well.

Tue, 09/13/2011 - 10:31 | 1663527 youngandhealthy
youngandhealthy's picture

Calmdown Tyler....just 52% of all-time high set in June 2010 and 66% of the 2008 panic.

"..

The ECB's all-time overnight deposit high of €384.3 billion was reached in June 2010, driven by uncertainty about the then nascent debt crisis and an abundance of liquidity in the market as banks prepared to repay a 12-month ECB refinancing operation. Overnight deposits reached €297.4 billion in November 2008, following the collapse of Lehman Brothers

.."

Tyler R U working for the the US Treassury or the FED....?

Tue, 09/13/2011 - 10:32 | 1663532 mayhem_korner
mayhem_korner's picture

Obvious-but-must-be-said observation: The only news that moves equities is what's going on with CBs.  The fact that reports about earnings, product innovation, management competence, etc. are dwarfed by the "who's crashing who's sovereign default party" is the most obvious sign of all that the markets are broken beyond repair. 

Stock bulls holding their breath for QE is like the pig in the house of straw hoping the Big Bad Wolf has bronchitis.  The world needs to stop pretending and go directly to RESET.

My two cents. 

Tue, 09/13/2011 - 10:39 | 1663568 Cdad
Cdad's picture

NEWS FLASH....BlowHorn [CNBC]...10:34 est...

The network finally comes around to report that the Chinese are not interested in Italian bonds, but rather scooping Italian industrial assets.  Well, that didn't take long....about 16 hours.  Which is just enough time to pull of another 6 sigma trading event driven by S&P futures.

And another Eurozone PIIG considers selling any assets with value to support profligate government spending.  I'm sure the Italians will be thrilled to learn this.

Tue, 09/13/2011 - 10:43 | 1663585 M.B. Drapier
M.B. Drapier's picture

Furthermore, USD Libor continues to rise and has now risen nearly 40 days in a row. While not nearly parabolic, it is time to shift attention away from Credit Agricole, which is still the most "funding challenged", and focus on CSFB which once again rose by 0.01%, and threatens to overtake the troubled French bank in pole position. Time to refocus the shorts from France to Switzerland?

So ... what you're saying is that Switzerland is close to solving its currency-appreciation problems? Happy days!

Tue, 09/13/2011 - 10:58 | 1663650 youngandhealthy
youngandhealthy's picture

DJ ECB Drains EUR166.963 Billion At 1-Day Quick Tender

 

So ECB "sterilized" twice the amount of Euro the bought Bonds for....

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