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European Liquidity Update: Horrible And Getting Worse

Tyler Durden's picture




 

Don't expect any good news in a post that has "European Liquidity" in the headline. While Euribor-OIS up from 0.81 to 0.82%, still 7 bps below the 2.5 year record of 0.89% from September 23, 3M USD Libor grinds once again wider from 0.378% to 0.381%, 50th consecutive increase, as UBS now has the spotlight with a 9th consecutive rise in its rate from 0.411% to 0.416%. Credit Agricole continues to be troubling and widest at 0.4375%, up from 0.435%. But most disturbing is that the deposits with the ECB soared to a new multi-year high of €209 billion, up from the €200 billion yesterday which we noted. And while none of this is surprising, we had some out of leftfield news coming from Deutsche Bank which announced it had taken €250 million in Greece-related charges after it had proclaimed for months its exposure was negligible and saw no write down risk. DB also said it won't make a €10 billion profit this year as had been promised earlier. So much for "them" not lying to "us."  The "us" response: DB CDS +15 at 224 bps at last check and moving wider, even as German CDS probes new record levels. At this point comparing 2011 to 2008 is no longer cool, but we will refer readers to this post from last night...

 

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Tue, 10/04/2011 - 07:10 | 1736364 GeneMarchbanks
GeneMarchbanks's picture

CNBC isn't talking about this so it must be unimportant.

Tue, 10/04/2011 - 07:15 | 1736369 oogs66
oogs66's picture

they haven't mentioned how much money liesman cost people "breaking" his story about leveraged efsf last week - guess it was only important when stocks went up

Tue, 10/04/2011 - 07:29 | 1736396 GeneMarchbanks
GeneMarchbanks's picture

It's all Lies... man.

Tue, 10/04/2011 - 07:12 | 1736365 Minoan
Minoan's picture

Who cares about liquidity?

Greeks have the solution-Free market at its best:

http://www.nytimes.com/2011/10/02/world/europe/in-greece-barter-networks...

Tue, 10/04/2011 - 07:15 | 1736368 Schmuck Raker
Schmuck Raker's picture

Is the ECB even aware that their running out of room at the top of this graphic?

Tue, 10/04/2011 - 07:29 | 1736395 westboundnup
westboundnup's picture

Douche chillllll.

Tue, 10/04/2011 - 07:42 | 1736418 James T. Kirk
James T. Kirk's picture

Hey Ducky,is that a new wallstreet drink? Or is it a description of the fluid that's going to be used by "Occupy Wallstreet" to waterboard Jamie Dimon when they catch him?

Tue, 10/04/2011 - 07:34 | 1736405 jm
jm's picture

Peak paper.

Tue, 10/04/2011 - 07:37 | 1736412 Dick Darlington
Dick Darlington's picture

OT: More very bad news from Spain today.

Madrid (AP) -- The number of people filing for unemployment
benefits in Spain shot up by nearly 100,000 in September, a
surprisingly big increase even in a month that tends to be bad
for workers as vacation season contracts expire.
     Tuesday's figures from the Labor Department are likely to
stoke renewed worries over the Spanish economy at a time the
government is trying to appease investors fretting over its
strategy to deal with hefty borrowings.
     The department blamed the anemic state of Spain's economy
and the effect of austerity measures on the job market for the
bigger than usual increase in September claims. It added that
government's forecast that 2011 would end with net job
creation, albeit small, will probably be wrong.
     The official forecast is for GDP growth of 1.3 percent for
2011, but hardly anyone believes that anymore.
     The department acknowledged the jobless claims increase was
disturbing, as it was nearly twice as big as the increase
posted in September 2010.
     Deputy Labor Minister Mari Luz Rodriguez said that in
recent weeks the ministry had seen daily increases of 10,000 in
claims for jobless benefits, and called the numbers "tough and
negative."
     The Labor Department says the increase of 95,817 raises the
total to 4,226,744. That's an increase of 2.32 percent from
August. It was also the biggest jump for a September since the
department's current accounting system was launched in 1996.
     Spain's overall jobless rate is released separately and
quarterly and stands at just under 21 percent, a eurozone
high.

Tue, 10/04/2011 - 08:04 | 1736471 msmith
msmith's picture
Oil continues to look very bearish with more downside ahead in the near term.  Also the AUDUSD keeps falling in lockstep with the ES.  Bearish price action should continue in the very short term before a retracement.  http://bit.ly/pGPGCZ
Tue, 10/04/2011 - 08:13 | 1736496 fdisk
fdisk's picture

"European Liquidity"

How about FED swap lines, are they open?

Tue, 10/04/2011 - 08:16 | 1736503 fdisk
fdisk's picture

Few hundred thousand unemployed Greeks bend over whole
world?

Tue, 10/04/2011 - 09:07 | 1736643 twotraps
twotraps's picture

fdisk...exactly.  Wonder how long it will take before they come up with some crazy plan to keep it together?  Europe has so much tied up in the Euro........one of the problems you get when politics lead the way.  Its was a purely political construct.  Now, they have economic necessity on their side, so who knows what they will come up with, why are we not considering some bullshit bailout on their part to save the currency??  It would be nice to let the mkt price this shit on its own for once but get ready for a 600+ up day in the Dow when Europe announces the latest greatest even more stupider than the US Monster Bailout.

Wed, 10/12/2011 - 14:23 | 1766577 karmete
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