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European Liquidity Downgraded From Ice To Carbonite

Tyler Durden's picture


Chatter across European trading desks, since confirmed by the EBA, is that medium- and long-term funding in Europe is now completely frozen. With Rehn still in denial and pointing to the problems in US and China, it seems things just got a little more desperate. Basis swaps at crisis levels, FRA-OIS at crisis levels, European GDP-weighted sovereign risk at all time highs, Belgium and Austria dislocating today, and EURUSD cracking through 1.3350.


EUR-USD Basis swap shows demand for USD liquidity is critically high.

FRA-OIS is at MAR09 levels - indicating trust in interbank lending has disappeared.

And at the center of it all, GDP-weighted sovereign risk for the entire eurozone just broke to all-time highs +15bps today at 328bps.

Charts: Bloomberg


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Wed, 11/23/2011 - 12:32 | 1907006 russki standart
russki standart's picture

The only liquidity in Europe is the urine dripping down the legs of the Eurocrats and Politicians.  Were I a EU leader,  I would be keeping my private jet on standby for a one way flight to Paraguay.



Wed, 11/23/2011 - 12:39 | 1907064 Mitch Comestein
Mitch Comestein's picture

It cost 0.30 euro to use the toilet in Germany.  They are just trying to save.

Wed, 11/23/2011 - 12:41 | 1907075 BaBaBouy
BaBaBouy's picture

Why IS the EURO worth more than a $Buck anyway ???

Wed, 11/23/2011 - 12:44 | 1907092 Spastica Rex
Spastica Rex's picture

How many angels can dance on the head of a pin?

Wed, 11/23/2011 - 12:54 | 1907141 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

As many as god tells to.

Wed, 11/23/2011 - 12:59 | 1907165 Doubleguns
Doubleguns's picture

BAbabouy, Unfortunately that tells you what a buck is worth. Stop laughing, you should be cryin.

Wed, 11/23/2011 - 13:05 | 1907193 Theta_Burn
Theta_Burn's picture

Don't worry our invite (US) to this party is just delayed a bit and NOT because our USPS in bankrupt either

The good news is this Christmas will be enjoyed by a few

The bad news is next Christmas will be canceled.

Wed, 11/23/2011 - 12:51 | 1907081 The Big Ching-aso
The Big Ching-aso's picture



How much more shit can these fans take before they get up and walk out the stadium?

Wed, 11/23/2011 - 12:42 | 1907086 Joe Sixpack
Joe Sixpack's picture

Don't forget the part about the jet being loaded with gold.

Wed, 11/23/2011 - 12:43 | 1907090 Joe Sixpack
Joe Sixpack's picture

Don't forget the part about the jet being loaded with gold.

Wed, 11/23/2011 - 12:51 | 1907124 The Big Ching-aso
The Big Ching-aso's picture



How can I you told me twice already.

Wed, 11/23/2011 - 12:50 | 1907120 The Big Ching-aso
The Big Ching-aso's picture



Does anyone know where I can buy a pocket-size Mayan calendar?

Wed, 11/23/2011 - 13:08 | 1907201 Eally Ucked
Eally Ucked's picture

Dollar Store or 12.5$ at Borders.

Wed, 11/23/2011 - 13:04 | 1907182 slaughterer
slaughterer's picture

I call a "double-top" in GDP-weighted sovereign risk.  /sarc

Wed, 11/23/2011 - 20:41 | 1908970 Buck Johnson
Buck Johnson's picture

No kidding and they might even be able to live on George Bush's massive farm that he bought down there.  It's drying up and drying up fast, and good money is betting that the EU will fall apart and/or someone is going to leave a big country (Germany) before all hell breaks loose.

Wed, 11/23/2011 - 12:30 | 1907011 tmosley
tmosley's picture

Paging WB7, need image of Sarkozy frozen in carbonite, paging WB7.

Wed, 11/23/2011 - 12:30 | 1907012 Boston Wealth
Boston Wealth's picture

Angela Merkel knows all too well it is fictional!

Wed, 11/23/2011 - 12:30 | 1907013 Conrad Murray
Conrad Murray's picture

Stuff those technocrat turkeys. Happy Thanksgiving eurobitches.

Wed, 11/23/2011 - 12:36 | 1907052 GeneMarchbanks
GeneMarchbanks's picture

Thank you Conrad. Technocraturkeys... will roast. Please do likewise to BAC etc etc across the pond.

Wed, 11/23/2011 - 12:45 | 1907094 Joe Sixpack
Joe Sixpack's picture

Turkey may be roasting eurobitches (though they are a eurobitch)

Wed, 11/23/2011 - 12:31 | 1907016 The Axe
The Axe's picture

Look for a cut in the rate, tonight..not in 2012 like JPM states, and look for a IMF to accept any paper, even toxic paper for a cash infusion tonight..and then watch I short-covering snap-back rally....

Wed, 11/23/2011 - 12:32 | 1907023 the not so migh...
the not so mighty maximiza's picture

thats all thats left now, bailouts and rumors of bailouts.

Wed, 11/23/2011 - 12:42 | 1907082 Caviar Emptor
Caviar Emptor's picture

I'll take rumored bailouts for 500Trillion, Alex

Wed, 11/23/2011 - 13:59 | 1907422 ex VRWC
ex VRWC's picture

OK, Rumored bailouts for $500 Trillion.  From which nearby star does this alien civilization who will soon bail out Earths governments hail?

Doo doo doo doo doo doo doo

Doo doo doo doo doooooo doo doo doo doo.....

Wed, 11/23/2011 - 15:49 | 1907959 fuu
fuu's picture

Sirius dog!

Wed, 11/23/2011 - 16:35 | 1908194 Things that go bump
Things that go bump's picture

What are Vogons?

Wed, 11/23/2011 - 12:45 | 1907095 Spastica Rex
Spastica Rex's picture

And a rain of blood and plague of locusts.

Wed, 11/23/2011 - 12:42 | 1907085 Eally Ucked
Eally Ucked's picture

I would cut it to -5%, why to go for small change? Talking about paper acceptance by IMF that's why I have stocked up on Toilette variety and hope to cash in on the trend. I'll make call to them tonight to finalize our deal.

Wed, 11/23/2011 - 12:44 | 1907019 slewie the pi-rat
Wed, 11/23/2011 - 12:32 | 1907021 Corn1945
Corn1945's picture

How much longer can they keep this sham together?

Wed, 11/23/2011 - 12:35 | 1907039 Gene Parmesan
Gene Parmesan's picture

Probably just long enough for the Syria/Iran/China/Russia vs. the US/Europe/etc royal rumble to get underway.

Wed, 11/23/2011 - 12:39 | 1907068 Tsar Pointless
Tsar Pointless's picture

The former team is managed by "Classy" Freddie Blassie, while the latter is managed by "Captain" Lou Albano.

Too bad Andre the Giant isn't alive to participate. I'd love to see Sergeant Slaughter team up with him against The Iron Shiek and Ivan Koloff.

Opportunity missed.

Wed, 11/23/2011 - 12:46 | 1907102 Spastica Rex
Spastica Rex's picture

Is this one a cage match?

Wed, 11/23/2011 - 16:37 | 1908202 Things that go bump
Things that go bump's picture

Ya, and we are all in it.

Wed, 11/23/2011 - 12:53 | 1907135 The Big Ching-aso
The Big Ching-aso's picture



How much time ya got?

Wed, 11/23/2011 - 12:33 | 1907024 moskov
moskov's picture

I don't believe the Fundamentals of Europe is that strong. If Russia cut their gas supply. Game over?


They have the guts to fingerpointing US and China? What a bunch of shit

Wed, 11/23/2011 - 12:47 | 1907100 hedgeless_horseman
hedgeless_horseman's picture



If When Russia must cut their gas supply. Game over?.

Wed, 11/23/2011 - 12:57 | 1907156 Doubleguns
Doubleguns's picture

They will simply price it in gold. EZ to take note from Germany Weimer republic and burn euros this winter.

Wed, 11/23/2011 - 13:00 | 1907169 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Germany will leave the Euro before that would happen.

Wed, 11/23/2011 - 12:33 | 1907027 Cdad
Cdad's picture

Wonderful...and just in time for the holidays!  

Oh the weather outsdie is frightful, but the fire side 's delightful....

Wed, 11/23/2011 - 12:38 | 1907061 GeneMarchbanks
GeneMarchbanks's picture

...and since we have no place to go, let it...

Wed, 11/23/2011 - 12:46 | 1907103 Dapper Dan
Dapper Dan's picture


Today will go down in history as The Thanksgiving Day Massacre,

Someone mentioned the message boards of yahoo, I have read many comments on a number of MSM sites and peoples opinions have changed dramatically in the last 6 months, the sheeple are hearing rumors of wolves in the adjoining fields and the wolves are hungry.  The panic phase is not far off.

When the anger comes I hope the sheeple don’t attack the shepherds, it is the owners who pay the Sheppard’s to herd the sheeple that are responsible, but I fear they don’t yet know who the owners are!


Wed, 11/23/2011 - 12:33 | 1907028 Quintus
Quintus's picture

Please, please, please just crash already.  This is getting unbearably tedious.

Wed, 11/23/2011 - 12:51 | 1907121 Spastica Rex
Spastica Rex's picture

I see you quiver with antici.......................................................pation.

But maybe the rain, isn't really to blame, so I'll remove the cause.....

but NOT the symptom!

Thu, 11/24/2011 - 06:19 | 1910124 StychoKiller
StychoKiller's picture

Oh, to take that first step to the left...

Wed, 11/23/2011 - 13:03 | 1907178 midgetrannyporn
midgetrannyporn's picture

Don't get hot and flustered

Use a bit of mustard...

Wed, 11/23/2011 - 12:33 | 1907030 TheSto
TheSto's picture

The night is darkest before the dawn. 

Wed, 11/23/2011 - 12:36 | 1907050 Tsar Pointless
Tsar Pointless's picture

Yes, but unfortunately, the sun just went down, and we're stuck in the Arctic in the middle of winter.

Dawn is a long, long ways away, and there won't be much daylight to sort through things before we go back to darkness.

Happy Thanksgiving, everybody!

Thu, 11/24/2011 - 06:21 | 1910127 StychoKiller
StychoKiller's picture

"We shall meet again, in a place where there is no darkness." -- O'Brien, "1984"

Wed, 11/23/2011 - 12:37 | 1907053 dwdollar
dwdollar's picture

You think this is night? You ain't seen nothing yet.

Wed, 11/23/2011 - 12:37 | 1907054 CvlDobd
CvlDobd's picture

What if this is, say just 10:30PM with hours until we get to pre dawn?

Wed, 11/23/2011 - 12:39 | 1907063 Greater Fool
Greater Fool's picture

...and then when the sun rises you can see all the dead bodies...

Wed, 11/23/2011 - 12:43 | 1907091 Saro
Saro's picture

Night? Ha.

Happy hour is just now ending. Wait 'til it's time to pay the piper for all that tequila!

Wed, 11/23/2011 - 12:55 | 1907143 CrimsonAvenger
CrimsonAvenger's picture

The night is darkest right before it turns pitch black.

There, fixed it for you.

Wed, 11/23/2011 - 14:21 | 1907508 ex VRWC
ex VRWC's picture

Apologies to Jackson Browne


Tender is the night
Better hold that gold so tight
You can burn your legal tender
When your fire needs a light

Tender is the night
The dereliction of the banker's might
Its the end of legal tender
Yeah, tender is the night 


Wed, 11/23/2011 - 12:44 | 1907034 DormRoom
DormRoom's picture

structural flaws in modern finance, and banking.


modern finance built to flip-algos, and bonus cutlure implies  high time preference of interest rates, which is incompatible with a Central Bank policy of long run high interest rates.  Thus extended periods of 'accomadative low interest rates". So you get bubbles. and bubbles .. from a pyramid of debt.


And now all bubbles will pop @ once, unlesss you print, and reflate, but doing so will make future adjustments more cataclysmic.  But there's not much political difference between 100M unemployed, and 1B unemployed. The mob will get you in either case.


 So they will print, and accelerate income inequality.  Thus social inequality.  Let the Great Reset happen. you have nothing to lose but your chains.


Wed, 11/23/2011 - 12:36 | 1907044 free_as_in_beer
Wed, 11/23/2011 - 12:36 | 1907045 JSD
JSD's picture

Super Mario is on the phone with The Bernank as I type asking him how to push the print button.

Wed, 11/23/2011 - 12:48 | 1907112 Conrad Murray
Conrad Murray's picture

Thank you for calling USA Prime Credit. My name is Benny, you have problem?

Wed, 11/23/2011 - 12:36 | 1907046 Dr. Engali
Dr. Engali's picture

I keep waiting for the moment when all of this breaks. It seems like it should have happened long ago. It amazes me that they can keep this together.

Wed, 11/23/2011 - 13:13 | 1907215 i-dog
i-dog's picture

There's still a long way to go yet! Some [productive] people still have jobs...some [middle class] people still have money...all markets are still open...pension funds haven't been looted yet...guns'n'gold haven't been outlawed yet...some countries haven't been invaded yet...FEMA camps are still under construction....

Not even into the seventh inning yet. Latter half of next year will be the bottom of the ninth, IMO

More popcorn, bitchez!

Wed, 11/23/2011 - 14:24 | 1907524 ex VRWC
ex VRWC's picture

Yeah and then a long, long offseason.  And a lockout.  ANd then a crappy labor agreement where the owners keep all the money.  See you in 2025!

Wed, 11/23/2011 - 12:36 | 1907049 chubbar
chubbar's picture

Die now OR print now then die later. Which choice will they make?

Wed, 11/23/2011 - 12:36 | 1907051 Snakeeyes
Snakeeyes's picture

German, Belgian bond yields and CDS spike. BAD sign for the core.

Belgium Dexia Debt Woes, Germany's Debt Issuance Debacle - Obama Spares Two Turkeys (NOT Belgium and Germany)

Wed, 11/23/2011 - 12:39 | 1907056 tallen
tallen's picture

I can almost hear the printers starting.


Oh no, ES below 1200. QE3 in 5...4....3...2.....1.....

Wed, 11/23/2011 - 12:39 | 1907066 topcallingtroll
topcallingtroll's picture

Die socialism die!

A system where only some people work ( and have their shit taken from them so that others can be lazy fucks)cant survive. The incentives are all wrong.

It is a much better society when people believe that they are responsible for their own welfare.

The chinese communists even agree with me!

Wed, 11/23/2011 - 12:52 | 1907133 Spastica Rex
Spastica Rex's picture

Go live in China then.

Wed, 11/23/2011 - 12:40 | 1907070 mayhem_korner
mayhem_korner's picture



EU-dog going paws up?

Wed, 11/23/2011 - 12:40 | 1907074 hedgeless_horseman
hedgeless_horseman's picture



...funding in Europe is now completely frozen

Everytime this happens the Rothschilds make an assload of money.

Wed, 11/23/2011 - 12:46 | 1907101 GeneMarchbanks
GeneMarchbanks's picture

By financing the winning side before they begin a conflict or to begin a conflict?

Wed, 11/23/2011 - 12:52 | 1907127 Dr. Engali
Dr. Engali's picture

The wining side? They finance both sides. Then extract the resources from the loosing side for compensation.

Wed, 11/23/2011 - 13:04 | 1907180 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Damn it, if only Europe had Nationalized their banking system like good 'ol Rotheschild had told them too back in '08, we wouldn't be in this mess.  The Rotheschildes and Sarkozys know all.

Rotheschilde/Sarkozy New World Order President 2012

Wed, 11/23/2011 - 12:52 | 1907132 hedgeless_horseman
hedgeless_horseman's picture


Wed, 11/23/2011 - 12:42 | 1907079 Village Smithy
Village Smithy's picture

And on the home front the giant ramp job that they did on the ES from Oct. 4 to 27 is going to be a killer for anyone who wants to go long. There just doesn't seem to be any natural support.

Wed, 11/23/2011 - 12:46 | 1907099 Caviar Emptor
Caviar Emptor's picture

Timing is everything...and in this case it could not have been any worse. 

Right before a major US shopping holiday....YIPES!!!

On the heels of today's report that retail sales for the 3 weeks ending last week were down 0.9% ! YIPES!!!

ANd right when Syria is melting into civil war, with shootings in Saudi Arabia, and GDP down and personal spending down...and ...and....and.....what's a global bankster heading to the Riviera to do????????

Wed, 11/23/2011 - 12:58 | 1907161 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Call Oliver and say, "Good show!"

Wed, 11/23/2011 - 12:48 | 1907107 Dick Darlington
Dick Darlington's picture

If EBA says it's frozen, what might the reality be? I mean, this is the same organisation who's been constantly lying abt the true situation of the banks. Remember, they said just a few months ago that European baks need roughly 3 billion new capital! 3 billion!!! Wow, in normal job one would get FIRED and probably JAILED for that kind of fraud. But hey, it's the "european way" or more likely "the european commission's way". With unelected "leaders" like the extreme-maoist Barroso (yep, his a real live communist) and Rehn, all people will get is lies, lies and damn lies. All they want is more power to Brussels and end of democracy. Unbelievable when looking what these commies have achieved that they want more power and that there still are people who support this regime. There's only one way out and that's disintegration.

Wed, 11/23/2011 - 12:48 | 1907108 nobusiness
nobusiness's picture

I really thought we would get a BS market jacking rumor by now.  Man, you can't count on anything anymore

Wed, 11/23/2011 - 12:48 | 1907109 rufusbird
rufusbird's picture

Wasn't it just two weeks ago that we had the agitated market analyst ranting about the "unregistered" blogosphere spouting opinions about the markets and saying that everything was "Boom" and the "lows in the market" are in!

Who was that masked man?

Wed, 11/23/2011 - 12:48 | 1907115 tomreagan
tomreagan's picture

Central Banks own this paper in truckloads. No way they let this fail. Global QE V 1.0 starring BOJ, FED, BOE, PBC, BOC coming before Christmas (yes ECB is left out to appease ze Germans). Fuck You Ben if you are illegaly reading this

Wed, 11/23/2011 - 12:52 | 1907126 Piranhanoia
Piranhanoia's picture

Step right up and get your H2O 9,  Just take it home, warm it up, and it will hydrate you.   Who's first?

Wed, 11/23/2011 - 12:52 | 1907128 Little John
Little John's picture

I don’t want to seem mean spirited but I hope J M Keynes is in Hell cleaning Hitler’s toilet.

Wed, 11/23/2011 - 12:54 | 1907140 YesWeKahn
YesWeKahn's picture

Tyler, I wanna a diamond.

Wed, 11/23/2011 - 12:56 | 1907150 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Each Europe State has a PPT, so whay don't they hurry up and spend some debt money?!

Wed, 11/23/2011 - 12:56 | 1907153 slaughterer
slaughterer's picture

Where is 2011's Hank Paulson, arms waving, stuttering about liquidity freezes, and money market seizures?  Not one Treasurer or Central Banker was the courage to act hysterically in public to get something done, and force some purchase program through.  

Wed, 11/23/2011 - 13:00 | 1907168 PaperBugsBurn
PaperBugsBurn's picture

I luvz me the smell of burning empires in the morning! How the sheeple wail and gnash their teeth. It truly is justice to see this day. I hope motherfuckers like topcallingtroll and a few other nitches perish in the coming storm, a victim of your own petty hatreds and narcissism. How poetic. Topcallingtroll, they will rape you and kill you like Gadafi. lmao

while you wallowed in iniquity they undermined your society, cocksucker

The Doomsday Project and Deep Events: JFK, Watergate, Iran-Contra, and 9/11

By Prof. Peter Dale Scott

URL of this article:

Global Research, November 22, 2011
Asia Pacific Journal Vol 9, Issue 47, No 2, - 2011-11-21

"I know the capacity that is there to make tyranny total in America, and we must see to it that this agency [the National Security Agency] and all agencies that possess this technology operate within the law and under proper supervision, so that we never cross over that abyss. That is the abyss from which there is no return."

      -- Senator Frank Church (1975)

I would like to discuss four major and badly understood events – the John F. Kennedy assassination, Watergate, Iran-Contra, and 9/11. I will analyze these deep events as part of a deeper political process linking them, a process that has helped build up repressive power in America at the expense of democracy. 

In recent years I have been talking about a dark force behind these events -- a force which, for want of a better term, I have clumsily called a “deep state,” operating both within and outside the public state. Today for the first time I want to identify part of that dark force, a part which has operated for five decades or more at the edge of the public state. This part of the dark force has a name not invented by me: the Doomsday Project, the Pentagon’s name for the emergency planning “to keep the White House and Pentagon running during and after a nuclear war or some other major crisis.”1

Wed, 11/23/2011 - 13:32 | 1907315 Iwanttoknow
Iwanttoknow's picture

Remember who financed to engineer Senator Percy and Chuch's opponents.

Wed, 11/23/2011 - 13:42 | 1907362 Vergeltung
Vergeltung's picture

your stupidity is uncommonly strong. congrats!


Wed, 11/23/2011 - 14:14 | 1907481 ceilidh_trail
ceilidh_trail's picture

Is that a turd I smell in your burning bag? Get a job...

Wed, 11/23/2011 - 13:05 | 1907190 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The PPT likes JEF today, I wonder if they sell out tomorrow.  Not a better way to fund the Fed than to day trade.

Wed, 11/23/2011 - 13:07 | 1907200 Nobody For President
Nobody For President's picture

Aaaaaaaaaaaannnnnnnnnnd, JUST in time for Thanksgiving:

The cold war is back:

(Reuters) - Russia will arm itself with missiles capable of foiling a U.S. shield in Europe and may deploy additional weapons in its west and south to counteract the system the United States is building with NATO allies, President Dmitry Medvedev said on Wednesday.

Wed, 11/23/2011 - 13:09 | 1907206 Neoisolationist
Neoisolationist's picture

Hank. Paulson. Moment.


There! Will! Be! Tanks!


...And yes that is a bazooka in my pocket.

Wed, 11/23/2011 - 13:36 | 1907332 SRVDisciple
SRVDisciple's picture

Carbonite? Who then is Jaba?

Wed, 11/23/2011 - 15:05 | 1907732 Georgesblog
Georgesblog's picture

This is more proof that fiat currency is a promise that can't be kept. The central bank collection agency is at the door, and won't accept excuses. Whether it be Europe, the U. S., China, India or any Third World country, the Piper will get paid.

Fri, 11/25/2011 - 02:12 | 1912251 dalkrin
dalkrin's picture

Browsing the BBC for the mainstream fix of my financial habit, and what do I find?

That eminent institution linking to our very own ZH!!

To this thread, where the world is best informed of the true nature of the situation.

Next goal, NY Times references Tyler Durden as maverick seer in the choppy seas of global finance.  Krugman axed.

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