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European Liquidity At Worst Level In Years

Tyler Durden's picture


While it is not all too surprising in light of news that Greece may be insolvent in 48 hours, that the ECB is about to commence printing with the abandon of a drunken chairsatan, and that New York has a "credible threat" of another terrorist attack, it is a fact that liquidity across virtually every European vertical is now at its worst levels in years, starting with the EURIBOR-OIS (or interbank/central bank funding spread), which soared by 6 bps to 81.2, or the most since March 2009, the 3M USD LIBOR rising for the 34th day in a row to 0.338% at multi-year highs, and with deposit facility usage at the ECB rising to a new one year high of €172.9 billion, an increase of €7 billion overnight. Of particular note is the dramatic deterioration at Credit Agricole overnight which hit 0.4% in the 3M USD Libor, far worse than the "self-reported" dollar funding at Barclays and RBS which as we reported earlier, are perceived as the riskiest European banks should the inevitable bond haircut take place. Just as Dexia long-CDS was the slam dunk trade of H1, is CA poised to be the H2 one?

ECB Deposit Facility Usage:

3M USD Libor by Bank:

and Euribor-OIS:


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Fri, 09/09/2011 - 11:19 | 1650834 vast-dom
vast-dom's picture




Vote Biyatchez!


(Does this above article not point to a mini-"correction"? Or is Hopium the newest Kool-Aid flavor with the greatest punch?)





Fri, 09/09/2011 - 11:14 | 1650835 doomandbloom
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Fri, 09/09/2011 - 11:14 | 1650838 tawdzilla
tawdzilla's picture

Lehman Bros part duex.

Fri, 09/09/2011 - 11:14 | 1650839 Racer
Racer's picture

Shhh, you will let the cat out of the bag and the ChairSatan and EuroDrunks will get all in a fluster

Fri, 09/09/2011 - 11:15 | 1650841 SeverinSlade
SeverinSlade's picture

Liqudity? We don't need no stinkin' liquidity!

Fri, 09/09/2011 - 11:15 | 1650844 DefiantSurf
DefiantSurf's picture

and now , back to your previously scheduled porn


Fri, 09/09/2011 - 11:17 | 1650846 Irish66
Irish66's picture

Germany plan for Greece default

Fri, 09/09/2011 - 11:17 | 1650847 NetDamage
NetDamage's picture

Counterpart risk, bitchez!

Fri, 09/09/2011 - 11:17 | 1650849 Racer
Racer's picture

Wow Dax is now lower than the FTSE.. it used to be over a 1000 points higher!

Fri, 09/09/2011 - 11:20 | 1650854 Robslob
Robslob's picture

Now I get it

1) Banking cartel knows their prior actions are going to cause another meltdown / collapse

2) Banking cartel calls military and puts them on notice

3) Banking cartel calls Governments and puts them on notice

4) Banking cartel orders terrorist attack

5) Governments seize the opportunity to take more control while people panic

6) Market tumbles


Fri, 09/09/2011 - 11:30 | 1650919 prains
prains's picture

$5000 gld = tanks on the street = long bags of rice /firewood

Fri, 09/09/2011 - 11:27 | 1650905 rambler6421
rambler6421's picture

I smell another false flag attack coming. 

Fri, 09/09/2011 - 11:41 | 1650968 msmith
msmith's picture

USD exploding higher and EURUSD falling like a rock.  I found some good analysis reports and interesting forecasts.
Well the bullish USD seems to have arrived.

EURUSD looking very bearish.

Interesting day for the ES today.  Only a matter of time before the larger breakdown occurs.

Fri, 09/09/2011 - 11:41 | 1650970 RobotTrader
RobotTrader's picture



Only a matter of time before we get the Obama-Bernanke "Re-substantiation Rally".

Chip stocks are already front-running it.

Fri, 09/09/2011 - 11:49 | 1651020 Zero Govt
Zero Govt's picture

There's no need to panic... we're at Def-Con 3 with only Def-Con 4 to go but Trichet knows how to turn this into a winning situation ...contagion is a figment of the markets imagination.. thank fuk for Trichet 

Fri, 09/09/2011 - 15:42 | 1652191 fiddy pence haf...
fiddy pence haff pound's picture

weekend. banks closed, but thanks to Zh, there were plenty of warning signs.


I agree that this is the beginning of a collapse, but we need to be distracted by a false flag event

so that the US/UK/GER/FR govs can slip the banks a T-note (trillion) while we're hiding under our beds.



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