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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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Wed, 02/08/2012 - 11:43 | Link to Comment oogs66
oogs66's picture

carry trade!

Wed, 02/08/2012 - 11:46 | Link to Comment Mr Lennon Hendrix
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?

Wed, 02/08/2012 - 11:51 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

02-08 10:00: Irish finance minister says Ireland is moving towards recovery

Prosperity is just around the corner...past the pub.

Wed, 02/08/2012 - 12:04 | Link to Comment LawsofPhysics
LawsofPhysics's picture

If only the irish could get past the pub.

Wed, 02/08/2012 - 12:06 | Link to Comment Irish66
Irish66's picture

not nice

Wed, 02/08/2012 - 12:08 | Link to Comment LawsofPhysics
LawsofPhysics's picture

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

Wed, 02/08/2012 - 12:06 | Link to Comment vast-dom
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

Wed, 02/08/2012 - 12:11 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

I love Tang.

Wed, 02/08/2012 - 12:15 | Link to Comment Dr. Engali
Dr. Engali's picture

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

Wed, 02/08/2012 - 12:17 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Excuse me, I love Poon-Tang. My mistake.

Wed, 02/08/2012 - 12:18 | Link to Comment vast-dom
vast-dom's picture

me 3 gene! 

Wed, 02/08/2012 - 12:42 | Link to Comment Dr. Engali
Dr. Engali's picture

Now you're talking good stuff.

Wed, 02/08/2012 - 14:02 | Link to Comment roadhazard
roadhazard's picture

top shelf

Wed, 02/08/2012 - 13:45 | Link to Comment Killer the Buzzard
Killer the Buzzard's picture

NASA cornered the market on Tang.

Wed, 02/08/2012 - 11:53 | Link to Comment ilion
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?

Wed, 02/08/2012 - 11:44 | Link to Comment Mr Lennon Hendrix
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.

Wed, 02/08/2012 - 11:54 | Link to Comment WonderDawg
WonderDawg's picture

Don't be a tease.

Wed, 02/08/2012 - 11:58 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Here comes the bucket drop!

Wed, 02/08/2012 - 14:03 | Link to Comment LongBalls
LongBalls's picture

Oil inventory is not helping gold and silver.

Wed, 02/08/2012 - 11:45 | Link to Comment RobotTrader
RobotTrader's picture

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

 

Man, those HFT's are fast.

Wed, 02/08/2012 - 11:48 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

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

Wed, 02/08/2012 - 12:14 | Link to Comment Orly
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.

:D

 

Wed, 02/08/2012 - 12:25 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

You and I are on the same page Orly.

Good seeing you!

Wed, 02/08/2012 - 12:28 | Link to Comment Orly
Orly's picture

Best of luck trading, Mr. Hendrix!

Wed, 02/08/2012 - 13:01 | Link to Comment slewie the pi-rat
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'!

Wed, 02/08/2012 - 12:53 | Link to Comment trav7777
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.

Wed, 02/08/2012 - 11:49 | Link to Comment Threeggg
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.

https://en.wikipedia.org/wiki/Fractal

 

Wed, 02/08/2012 - 12:06 | Link to Comment NotApplicable
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.

Wed, 02/08/2012 - 12:10 | Link to Comment NotApplicable
NotApplicable's picture

First thought...

Rollin'

Rollin'

Rollin'

Keep those Bennies flowing.

Gotta keep debt growing.

Or Die!

Wed, 02/08/2012 - 11:51 | Link to Comment Dr. Engali
Dr. Engali's picture

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

Wed, 02/08/2012 - 12:00 | Link to Comment ViewfromUnderth...
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.

Wed, 02/08/2012 - 12:02 | Link to Comment LawsofPhysics
LawsofPhysics's picture

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

Wed, 02/08/2012 - 12:15 | Link to Comment Orly
Orly's picture

This time, it's for real...

Wed, 02/08/2012 - 11:46 | Link to Comment NumNutt
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...

Wed, 02/08/2012 - 11:46 | Link to Comment lolmao500
lolmao500's picture

It's all normal.

Wed, 02/08/2012 - 11:47 | Link to Comment LongSoupLine
LongSoupLine's picture

 

 

I smell a silver buy opportunity approaching...

Wed, 02/08/2012 - 11:49 | Link to Comment Mr Lennon Hendrix
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.

Wed, 02/08/2012 - 12:57 | Link to Comment trav7777
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?

Wed, 02/08/2012 - 11:50 | Link to Comment Theta_Burn
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...

Wed, 02/08/2012 - 11:51 | Link to Comment SheepDog-One
SheepDog-One's picture

Skeletons of Society

Wed, 02/08/2012 - 11:49 | Link to Comment SheepDog-One
SheepDog-One's picture

ALL IS WELL REMAIN CALM NOTHING TO SEE HERE ALL IS WELLLLLLLLLL!!!

Wed, 02/08/2012 - 11:51 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

LOOOUUUUD NOISES!

Wed, 02/08/2012 - 11:49 | Link to Comment Comay Mierda
Comay Mierda's picture

damn thats a lot of toilet paper

Wed, 02/08/2012 - 11:52 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

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

Wed, 02/08/2012 - 11:51 | Link to Comment ebworthen
ebworthen's picture

Liquidity, debt, solvency problems?

Nah!

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

Wed, 02/08/2012 - 11:52 | Link to Comment stocktivity
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.

Wed, 02/08/2012 - 12:08 | Link to Comment ViewfromUnderth...
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.

Wed, 02/08/2012 - 12:17 | Link to Comment Smiddywesson
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

Wed, 02/08/2012 - 12:39 | Link to Comment Ghordius
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

Wed, 02/08/2012 - 12:25 | Link to Comment Gamma735
Gamma735's picture

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

Wed, 02/08/2012 - 11:52 | Link to Comment Jlmadyson
Jlmadyson's picture

Hey just wait until next month when all those 3 month swap lines are due.

Gonna be good.

Wed, 02/08/2012 - 11:52 | Link to Comment resurger
resurger's picture

http://www.infowars.com/massive-evidence-of-vote-fraud-in-nevada/

How the fuck Ron loses Nevada!

skip to min 7:00

Wed, 02/08/2012 - 12:59 | Link to Comment trav7777
trav7777's picture

RP is losing because people simply aren't voting for him

Did you think the Repugnicon party was full of geniuses?

Wed, 02/08/2012 - 14:15 | Link to Comment roadhazard
roadhazard's picture

repubicans aren't hardly voting, period. I don't blame them either, having a birth certificate is not enough. 

Wed, 02/08/2012 - 11:53 | Link to Comment vote_libertaria...
vote_libertarian_party's picture

Apparently AAPL has an app for this too.

 

DAMN YOU AAAAAAAAAPL!!!!!

Wed, 02/08/2012 - 11:58 | Link to Comment mantrid
mantrid's picture

so, when we get upgrade to trillions?

Wed, 02/08/2012 - 11:59 | Link to Comment Everybodys All ...
Everybodys All American's picture

This is just more of Bernanke's Fed bailing out the EU defacto.

Wed, 02/08/2012 - 12:00 | Link to Comment Dermasolarapate...
Dermasolarapaterraphatrima's picture

Go back to sleep!

We're busy printing......

Wed, 02/08/2012 - 12:00 | Link to Comment Gubbmint Cheese
Gubbmint Cheese's picture

Banks: 'feed me Seymour... Feeeed me!'

Wed, 02/08/2012 - 12:00 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Flood the system with dollars, the chair satan wants inflation!!!

Wed, 02/08/2012 - 12:04 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

Print faster, faster, Scotty, we need more dollars...we must have more dollars Scotty...

Wed, 02/08/2012 - 12:35 | Link to Comment Caggge
Caggge's picture

Damnit Scotty, I need warp print nowwwwwwwwwwwww!

Wed, 02/08/2012 - 12:01 | Link to Comment fonzannoon
fonzannoon's picture

I see nothing other than the same crap going on today.

Wed, 02/08/2012 - 12:05 | Link to Comment lolmao500
lolmao500's picture

The FED shouldn't give a goddamn cent to the ECB. Want dollars? Sell us assets.

Wed, 02/08/2012 - 12:07 | Link to Comment NotApplicable
NotApplicable's picture

Just be happy they've found a productive use for all of those dollars. ;-)

Wed, 02/08/2012 - 12:33 | Link to Comment css1971
css1971's picture

Don't they get Euros?

Wed, 02/08/2012 - 12:23 | Link to Comment Gamma735
Gamma735's picture

When the dollar bubble pops it will be felt around the world.  Do you think the world will thank us when we desrtoy trillions in wealth?

Wed, 02/08/2012 - 13:00 | Link to Comment trav7777
trav7777's picture

Hegemonies don't fall in pops absent major wars.

The Pound was doing just fine until WW1 then 2.  Rome took several centuries to totally wither away.

Wed, 02/08/2012 - 12:58 | Link to Comment EBR MOD 0
EBR MOD 0's picture

is that destruction like the vaporization of dollars in MFG?

Wed, 02/08/2012 - 13:12 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

These USD-EUR swaps have one purpose:  Keeping the Euro from collapsing.

Matches the Euro bank run chart from earlier this morning.

Together they signal collapse of the Euro beginning last week of 2011 when swaps jumped from 2 billion to 50 billion.

(It also coincides with EU's decision to boycott Iranian oil.)

This is it.  The end of the EU.

Speculation:  Germany has decided to leave.  Guess they got their DMs all printed up and ready to go.

Further speculation:  Russia has told Europe "no more gas, y'all can freeze to death".

Wed, 02/08/2012 - 13:23 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

great update!

i'll bet FED has a real pile0'stinko growing up to finance these .006 deals! 

and the "liquidity" levels keep climbing, so is this liquidity "trapped" b/c the benzelbub really can't call this back w/out introducing ice-9 to 11 banks (at least)?

this "little detail" came to mind as i was considering that UBS LTRO bullshit, yesterday

my slewie charm got me tossed from the UBS lobby!

Wed, 02/08/2012 - 13:38 | Link to Comment asteroids
asteroids's picture

Apparently LTRO has run out and now those banks are hitting up the FED. What happens when the FED says "no mas." ?

Wed, 02/08/2012 - 20:03 | Link to Comment stocktivity
stocktivity's picture

Ha ha ....the Fed saying "no mas" is like Michelle Obama saying no more vacations on the taxpayer dime.

Wed, 02/08/2012 - 14:54 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Looks like the ESF ,and the PPT spent a whole lot today to wack gold and silver down.

And platinum and pallidium is up....???

Ya o.k.

Ps....Fuck you timmy,you little weasel.

Wed, 02/08/2012 - 15:47 | Link to Comment jon
jon's picture

Will the house of cards collapse? Yes.

Will the paper dollar be repudiated in the marketplace? Yes.

When?, you ask.

There will be a clear signal. The fat lady will finally sing when there is a hemorrhage of dollars leaving the US. That will be your indicator.

Where will those dollars go? Nobody knows — but it won't take many of the greenbacks seeking refuge in precious metals to cause an explosion in price.

http://www.lewrockwell.com/blumert/blumert48.html

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