European FX Swap Line Usage With NY Fed Rises To Fresh Multi-Year High As More Banks Demand More Dollars

Tyler Durden's picture

While the disclosure of New York Fed's FX swap line usage with the ECB continues to be between 1 and 2 weeks delayed, courtesy of our ECB friends/Goldman alumni, who post swap line usage in real time, we find that in the week starting with tomorrow's settlement, the total swap line usages has risen yet again in the past week, this time to a fresh multi-year high of $89.7 billion, an increase of $400 million compared to last week, and the highest since July 2009. The reason for the increase is that the 7 Day swap line for $3.73 billion maturing tomorrow and used by 10 banks, and at a cost of 0.59% has been replaced with a fresh 7 Day swap line for $4.13 billion and at a higher cost of 0.61% and used by 11 banks. We do realize that this fact goes 100% against the prevailing flawed meme that European bank liquidity, especially in USD, has been restored (why, just look at BBA member bank self-reported 3M USD Libor - it is declining - by Jupiter, it means all is well!). For that we apologize profusely.

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Mr Lennon Hendrix's picture

I thought TARP/STIMULUS/QE I/QE 1.5/QE II/QE 2.5/POMO/OT2 were suppossed to fix the liquidity crunch?

LawsofPhysics's picture

If only the irish could get past the pub.

LawsofPhysics's picture

Pessimist, I happen to think the pubs and their product are rather nice in Ireland.

vast-dom's picture

The autumn leaves are falling like rain. Although my neighbors are all barbarians, and you, you are a thousand miles away, there are always two cups at my table.

~T’ang Dynasty poem

Dr. Engali's picture

Gross. Do they still make that stuff? Or do you have it stock piled?

ilion's picture

I came across with a Florida company Armada Forex and read their daily market wraps. Yesterday they said that crude should break to the upside which it did today. They also said EUR/USD should move higher, which it also did. Has anybody had any dealings with this firm and are they for good?

Mr Lennon Hendrix's picture

We might be seeing a flash crash today.  Gold and silver are signalling such, if platinum joins them stocks will crash.

RobotTrader's picture

Gold just tanked $12 within milliseconds of this article getting posted.


Man, those HFT's are fast.

Mr Lennon Hendrix's picture

Stocks are following.  If the Trinity (gold/silver/platinum) all move down in freefall, stocks will crash.

Orly's picture

The EURUSD just broke its long-term Fibo line, as well.  If my calculations are correct, the next stop is 1.26438.



Mr Lennon Hendrix's picture

You and I are on the same page Orly.

Good seeing you!

Orly's picture

Best of luck trading, Mr. Hendrix!

slewie the pi-rat's picture

hey, orly!

thx for the heads-up!  even tho i'm not a  fx trader, i don't think U B 'fibbin'!

trav7777's picture

oh fkin please.  No they are not going to fucking crash.

A $12 move in gold is nothing.

Platinum's recent price action is suggestive of a temporary recovery.  But there is so much more volatility in that it is hard to read.  There is no gigantic horde of lemming getrichquick speculators trying to buy platinum coins and no shameless pumpers trying to cause stampedes into it.

Pt made a double bottom on clear divergence over the oct/dec timeframe.  While it's overbought here, and it hit an IH&S target point, it certainly isn't signalling what you claim it is.

Threeggg's picture

Talk about a Fractal !

  From Wikipedia:

Fractals are mathematical sets that can have dimensions that fall between the integers.[1] They are typically self-similar patterns, where self-similar means they are "the same from near as from far"[2]. Thus, on a computer, as you zoom in on a fractal image, nothing changes and you see the same pattern appear over and over.


NotApplicable's picture

I just realized that Benron and the grand ZIRP4EVA game is attempting to turn fractional-reserve banking into fractal-reserve banking, in this case built of infinite IOUs with infinite counter-parties. There will be no unwind, as there will be no identifiable net position. Only more, and more, and more promises.

Hmmm... the stability of infinity. I'll have to think about that one for a while.

NotApplicable's picture

First thought...




Keep those Bennies flowing.

Gotta keep debt growing.

Or Die!

Dr. Engali's picture

For those of us who bought sub $1,000 that is a terrifying drop.

ViewfromUndertheBridge's picture

Could not have been related to the price first rising into the London PM Fixing and then after physical delivery price is set, the electronic price plunges...a common pattern.

LawsofPhysics's picture

Right, the gold I bought at $532 an ounce is simply terrified.  

Orly's picture

This time, it's for real...

NumNutt's picture

Wow if I could only be at the bottom of this rabbit whole so I could catch all the worthless fiat they keep tossing down it.........oh....wait....actually I am ......crap...

lolmao500's picture

It's all normal.

LongSoupLine's picture



I smell a silver buy opportunity approaching...

Mr Lennon Hendrix's picture

It looks like silver will be down 3% - 4% today, gold down big, but it will take stocks with it.  Look for the Dow to be down 150 - 200.

trav7777's picture

well as of an hour after forecasting the apocalypse, I am seeing Ag down a whole 43 cents.  Is TEOTW postponed till after lunch?

Theta_Burn's picture

Flawed meme = Brilliant strategy

Pallets of cash (if stacked correctly) = pillars of society

not sure if a sarc/ is warrented here...

SheepDog-One's picture


Comay Mierda's picture

damn thats a lot of toilet paper

Mr Lennon Hendrix's picture

And after they fractionally reserve it, that's a lot of ones and zeros.

ebworthen's picture

Liquidity, debt, solvency problems?


They just like Ben Franklin's face (er...binary signature?).

stocktivity's picture

I keep reading ZH and the articles keep making perfect sense to me but there is always something out there in the real bizarro world that keeps the hopium going. It doesn't matter what the daily crisis, someone...the Fed, ECB, Merkel, or whoever the daily savior...has an answer to kick it even further down the road. I'm getting the feeling that they have much more money and power to take this out much further than most of us ZH readers believe.

ViewfromUndertheBridge's picture

In Weimar people made money at times being long Marks, Gov't intervention created massive volatility and at the time almost everyone did not understand what was happening or what the end-game would be. A good book for guidance is Lords of Finance, in the 1920s and early 1930s people believed central bankers were omnipotent, until they weren't. Now, CBs are household words again...and the expectations are the same as then. They have fucked up again.

Smiddywesson's picture

Great books VfU, I love those books too:

a.  When Money Dies

b.  The Lords of Finance

c.  This Time is Different

Ghordius's picture

d. currency wars - james rickards

e. fool's gold - gillian tett

f. though the very best is the 1931 Constantino Bresciani Turroni "The Economics of inflation" - the only serious book that does not try to sell you anything, including gold, it just really tries to explain what really happened during the Weimar Hyperinflation, including the shifts in the industry and how the different groups in society benefited or were busted by what happened and how

g. and I urge to watch how all this started, on youtube, search for Nixon and currency, the 4 minutes speech he gave on August 15th, 1971

Gamma735's picture

Bubbles always go on longer than rational people believe they can.  Bubbles also deflate faster than anyone can foresee.