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Fed Dollar Swap Lines With Europe Soar To $1.9 Billion, Most Since June 2010
For a week in which Europe was supposed to be healing, and certainly not provoking the curiosity of forensic capital chasers, it sure did a heck of a job. In the week ended October 19, the Fed disclosed that not only did it roll its $500 million 7 Day facility (at 1.08%) with the ECB, but it also entered into a new 84-Day 1.09% facility (this is about 60 bps more than 3M USD Libor, confirming just how ridiculous and meaningless the 3 month USD Libor market is). It is of course unclear which bank ends up being on the ECB's receiving end, but one thing is certain: the dollar shortage in Europe is now as bad as it was just after the first Greece insolvency, when nobody was prepared for the bank lockup that followed. Additionally, with deposit loans at the ECB soaring to €182 billion, a runrate which will promptly surpass last month's high, it is once again all too clear that there is no free liquidity in Europe, and that the thesis presented by Zero Hedge over the weekend, that the only reason for the persistent high level of the EUR is due to the sale of USD assets by French banks and subsequent FX repatriation, is what explains the ongoing schism between the European market, which is driven by wholesale asset sell offs by French banks, and the American one, which is electronically trading with 100% correlation to the EURUSD which is sending a completly false "all clear" signal to the market.
Historical New York Fed swap line usage:
And the just released Fed data:
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Burrish.
These numbers will only get higher and higher and they'll eventually just stop reporting it, and if they do, it will be a much smaller number than it is in reality.
I have a hard time believing this hasn't been going on for some time now behind the scenes.
Tip of the iceberg...
It's just a speed bump in the North Atlantic.
That's pocket change... show me some real numbers... you ain't shit..
Damn, that sounds good.
'tis. think i will have another...
Bank loans presumably taxpayer/depositor $ to institutional funds who then buy bank shares. What a racket....
€1.5bn Dexia loans used to buy shares in ... Dexia
Dexia, the stricken Franco-Belgian lender that has been at the centre of recent market turmoil, loaned €1.5bn of fresh capital to its two largest institutional shareholders which then used the cash to buy Dexia shares before 2008, the Financial Times has learnt
Lesson Euro / USD swaps if your unfamiliar: http://www.cnbc.com/id/44963864
stop posting news and charts from an alternate universe!
Ok, sick of waiting for the Tylers to do it so I put this together:
European Bailout Log
IN
10/18/2011 - 10:23
OUT
10/18/2011 - 10:31
IN
10/18/2011 - 13:53
CDS OUT
10/18/2011 - 14:20
IN
10/18/2011 - 15:16
OUT
10/18/2011 - 16:00
IN
10/19/2011 07:13 -0400
OUT
10/19/2011 - 09:22
IN? / OUT?
10/19/2011 12:00 -0400
OUT
10/19/2011 - 14:09
MORE OUT
10/19/2011 - 14:50
IN? / OUT?
10/19/2011 - 15:22
OUT
10/20/2011 - 07:34
IN
10/20/2011 - 08:58
OUT
10/20/2011 - 09:12
IN
10/20/2011 - 09:31
OUT
10/20/2011 - 09:34
OUT AGAIN
10/20/2011 - 10:32
OUT AGAIN
10/20/2011 - 10:41
OUT AGAIN
10/20/2011 - 12:14
IN?
10/20/2011 - 13:40
[Fake porno actress breathing and moaning].
"Oh baby, you're sooo good!!"
"OUT AGAIN" Not Sooo Good
Out again soooo many times, he's either a Cheese-Dick-Wanker Timmah Geithner and can't keep it in...
Or he's as blind as a Baldy Bernank and can't find it...
There's no third way...
Brilliant! My only suggestion would be to add the leverage portion of each rumor...5x IN
Yes please, this is the "oh God, its so big" part of the script above.
Those $500 million draws just practice runs I guess
True. That is probably just enough to meet payroll.
Uh oh.
Perception becomes reality until reality kills perception.
They don't call'em smoke and mirrors for nothing, Hun...
buy, buy. I am going to bed now.
Perception deception..
Now boys ... don't you go giving my money to a bunch of indebted Euro holders.
Honestly ... I almost hope Geithner and Ben and Obama go ahead and give our money to Europe. It'll be the last things they do and the thing they'll go down in history for
Pitchforks ... get your pitchforks right here.
BTW: I also have matching tin foil hats at a very reasonable price.
Still not to Jan 2009 levels. Plenty of paper to move. I guess things would be different if we ever got physical and weren't moving cyber bits around.
I pat your back and you pat my back. Everybody's happy.
Again, time to get those inflation trades lined up.
Gold.
any physical asset or interest bearing investment. Silver looks good too.
No way.
Gold and silver have topped out.
clownbux.
Now I understand shipping manifests increase. It's all pure dollars.
Speaking of false signals.
Gold and silver has the weirdest boner right now.
Confused
The 2nd part connects to the theory that the bots are not under sufficient human control?
US is only dollar swap, who else are they swapping with?
$1.9B just doesn't even sound like a lot any more.
Even levered up 50:1 it's still just a rounding error.
Silver the new white meat
Wonder what the US public reaction would be if they new how the money is really being used? Kinda like when you hear about the IMF being part of the solution and knowing 22%? or so comes from the US tax payers.
long "false clear." And strangely, it is creating a unique feedback loop.
Drand, the public is so numb and neutered /castrated etc.. they wouldn't care if they did know.. If their star is still on dwts, or the real Botox and fake boobs of NYC, then they are fine.
This is all one big FARCE!!!!! FML
Why cab't the Europeans just lie and say they have 100 trillion $US....but nobody is allowed to audit it.
Short gold/silver
Long fiat king dollar
Max... Did u mean one big FUBAR?
A+B+C?
Raise!
so, that 84-dayz out outa be abt when the 100-day given to the banksters earlier runs out--january next year; maybe it is part of the same deal, now being taken abooard the ECB sister-ship just in case the natives party too hard, this weekend, here or there, or perhaps some banksters will need it to stay afloat soon...
stay tooned!
Meanwhile, Belarus devalued it's currency by 52% overnight and by 289% since January 1st, 2011. Fiat currency is the easiest way to rob the people. Gold topped out? No way!
EU Said to Weigh Combined $1.3 Trillion Fund
Until Merkel comes out and says that, it's just another endless rumor.
And then it's just an official rumour
Nothing to see here, please keep moving....
YES! AMERICANS AGREED TO PAY THE BILL! Waitress, bring the most expensive champagne bottle you got!
THIS ARTICLE HAS A STUPID TITLE. 1.9 BILLION SWAP LINE? CUT ME A BREAK. THATS CHUMP CHANGE. OL' BENNIE BOY WILL SHIT THAT OUT IN HIS SLEEP!!
http://www.ecb.int/press/pr/wfs/2011/html/fs111018.en.html
Incase anyone was wondering:
The swap lines are temporary reciprocal currency arrangement between the Federal Reserve and the ECB, whereby the Federal Reserve makes US dollar liquidity available to the ECB while the ECB makes euro liquidity available to the Federal Reserve for distribution, when needed, to their respective counterparties. In this way, the figure you cite is US-dollar liquidity provided by the ECB to euro area financial institutions, through a regular weekly facility and one three-month tender. In the same way, the Federal Reserve can provide euros to its own counterparties if the need should arise.