This page has been archived and commenting is disabled.

Still Stressed - ECB Deposit Facility Usage Passes €300 Billion, Highest Since June 2010

Tyler Durden's picture




 

According to the ECB, deposit facility usage - an indicator of capital flight in the European banking system expressed in euros not dollars, just hit the highest since June 2010, over €300 billion for the first time in 18 months, rising from €297 billion to €304 billion overnight. On its face, this is not a good indication, with the only saving grace being that this was potentially before the market open on November 30, before the central bank announcement. Marginal lending, or the ECB's discount window, also rose from €2.7 billion to €4.6 billion, the highest since October 18. Needless to say tomorrow's deposit facility update will be critical because unless there is a major drop in usage, it will confirm that in addition to a USD-funding shortage which should have been ameliorated even if very briefly, other EUR-based risks are being observed by Europe's banks, who better than anyone know what the interbank system risks are, and the Fed's USD liquidity injection will have failed to achieve anything except to ramp risk higher for a day or two.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 12/01/2011 - 09:16 | 1934498 AngryGerman
AngryGerman's picture

"nothing to see here, pass along"

Thu, 12/01/2011 - 09:19 | 1934500 TruthInSunshine
TruthInSunshine's picture

Obama's former main homey on all things economic just rung the death knell on the euro zone:

Austan Goolsbee on why the euro zone won’t survive - The Washington Post

 

The Obama Administration literally has a war room set up with a hotline to the "independent Federal Reserve 'Bank'" and red phone with a direct line to The Bernank, as they watch helplessly as the magnitude of what is the inevitable conclusion to the EU experiment unfolds in gory detail.

Thu, 12/01/2011 - 09:19 | 1934504 Irish66
Irish66's picture

everyone and their mother is announcing the end of the euro,

I can't understand why people don't see it

Thu, 12/01/2011 - 09:24 | 1934512 TruthInSunshine
TruthInSunshine's picture

As Mervyn King (President of the Bank of England) tweeted this morning (yes, tweeted), markets rallied on the presumption the EU has a liquidity crisis yesterday, when in fact, nothing could be further from the truth; the EU has a SOLVENCY crisis.

Liquidity crises are when you need to borrow $100 from you buddy, because you really did leave your wallet at home inadvertently. Solvency crises are when your wallet has no cash, and your credit cards/debit cards would all be denied if you tried to use them.

Thu, 12/01/2011 - 09:24 | 1934514 Irish66
Irish66's picture

this is why our banks have to pass a new stress test

Thu, 12/01/2011 - 09:31 | 1934527 TruthInSunshine
TruthInSunshine's picture

Austan Goolsbee on why the euro zone won't survive

 

Austan Goolsbee is the former director of President Obama’s Council of Economic Advisers and an economics professors at Chicago University’s Booth School of Business. On Monday, he published an op-ed on the crisis in Europe that made some provocative points, so I asked him to expand on them in an interview. I think it’s fair to say that Goolsbee is not an optimist when it comes to the euro. The problem, he says, is that even if you recapitalize the banks and end the runs on government debt, you haven’t solved the region’s growth problem. A lightly edited transcript follows...

Austan Goolsbee on why the euro zone won't survive 

Thu, 12/01/2011 - 09:35 | 1934538 Ghordius
Ghordius's picture

The EuroZone or the MegaBanks "that happen to be based in Europe"?

They are not the same.

Thu, 12/01/2011 - 09:39 | 1934546 LawsofPhysics
LawsofPhysics's picture

Hey sunshine, the same can be said of the entire world.  Still believe in an infinite growth in a world with finite resources do ya?  Good luck with that.  The fucking world has a solvency problem, unless of course aliens show up with some "space cash".  Fucking pods.

Thu, 12/01/2011 - 09:41 | 1934550 TruthInSunshine
TruthInSunshine's picture

I don't disagree.

It's a global solvency crisis.

It's just that some will be marked to insolvency sooner than others.

Race ya to the ATM....I mean oil well/gold mine!

Thu, 12/01/2011 - 10:03 | 1934613 LawsofPhysics
LawsofPhysics's picture

Indeed.  I spent some time in Russia, post collapse.  I am still amazed that "educated" people still think that you need to have wage increases before you can have any inflation.  Sort of makes you wonder if they had financial schools on Easter Island and whether or not those academic fucks were saying the same thing as they cut the last tree down on the island.  Yep, the only stocks I'll hold now are energy and miners.

Thu, 12/01/2011 - 10:22 | 1934670 TruthInSunshine
TruthInSunshine's picture

We're having wage collapse and inflation in the U.S. right now.

I know my opinion doesn't mesh and jive with the BLS or Fed's official, credible statistical data (/sarc), but I do believe if one were to subtract government transfer payments (SNAP, Unemployment Insurance, Social Security, SSI, etc.), run a remotely accurate tracking of wages AND benefits (including the all important medical co-pay/deductibles and # of companies offering retirement plan matching funding) adjusted for true inflation, and as a necessary derivative, calculate an honest rate of current inflation (I believe Marc Faber is in the ballpark as is John Loman of MIT with an estimate of about 8% per annum), we'd find that we're already experiencing this, and there are many reasons to believe it's going to accelerate and few reasons to believe that it won't.

*I didn't even include the millions of "those not counted as unemployed" for purposed of my point on wage deflation, as they've exhausted their UE benefits, and are no longer even considered underemployed by the government's flawless logic. And then there are the tens of millions of "underemployed," who don't get counted in U3 in most any aspect, either...

Thu, 12/01/2011 - 10:31 | 1934711 Dr. Richard Head
Dr. Richard Head's picture

I have to say that I feel guilty that my wages have increaed by over 20% YOY.  Even with my personal prosperity increasing (at least not at the expense of others, I will fight against the central banking cartel at all costs. I already have my FEMA pajamas ready.

 

Thu, 12/01/2011 - 10:34 | 1934724 TruthInSunshine
TruthInSunshine's picture

Never feel any guilt when projecting a silver stake through the heart of a Central Bankster Vampire.

Just my .02 (it was a dollar in 1912).

Thu, 12/01/2011 - 10:29 | 1934703 Dr. Richard Head
Dr. Richard Head's picture

Educated people are only educated through the absurd macro economic theories that interest rates can be controlled through central bank intervention, supply and demand can be augmented through the printing press, and that the money multiplier of fractional reserve banking is for the goodness of us all. 

Thu, 12/01/2011 - 09:20 | 1934506 AngryGerman
AngryGerman's picture

i don't listen to those fuckers

Thu, 12/01/2011 - 09:34 | 1934536 ISEEIT
ISEEIT's picture

The E.U. isn't going anywhere soon. They will keep kicking the can untill after the U.S. elections. ECB money printing will likely be announced on or shortly after the 9th. Check out www.economicpolicyjournal.com. The guy is pretty sharp and makes good calls.

Thu, 12/01/2011 - 09:56 | 1934595 pvzh
pvzh's picture

Unless, of course, they plan to stop this charade with election. Then, they can blow up everything much earlier.

Thu, 12/01/2011 - 10:32 | 1934712 Dr. Richard Head
Dr. Richard Head's picture

The elite's ability to keep thing running all of the way to the elction is looking slimmer and slimmer.

Thu, 12/01/2011 - 10:10 | 1934629 TruthInSunshine
TruthInSunshine's picture

The Economist had made some brilliant calls (reference this 2003 article - the 1st of its kind - as just one example of a spot on analysis/prediction: House of cards | The Economist, or this shortly thereafter follow up: The global housing boom: In come the waves | The Economist), and one of their senior economic editors literally said during an interview this morning that "the EU has reached the end of the can kicking road if they don't produce a credible plan by next week."

He went on to say that none of the plans spoken of thus far was remotely credible (and even laughed when asked about the talk of having PIIGS, and especially Italy and Spain, having to get their budgets approved ahead of time by the ECB, in order to get loans, saying this would be politically and practically impossible).

Thu, 12/01/2011 - 11:05 | 1934830 rufusbird
rufusbird's picture

RE: "The Obama Administration literally has a war room set up with a hotline to the "independent Federal Reserve 'Bank'" and red phone with a direct line to The Bernank...."  Good one...

I think the "Independent Federal Reserve 'Bank" has a war room set up with a hot line to the white house and one to each of the primary dealers, and one for a each of a dozen european central banks....

Thu, 12/01/2011 - 09:26 | 1934517 jdelano
jdelano's picture

Having had 24hrs now to reflect on it, I simply don't understand.  How can a few men have the power to utterly destroy capitalism and democracy the world over for the sake of 500 points on the Dow, and why exactly do they think that is in their interest?  What fun is it to be the emperor of a smoldering wasteland?  I'm surrounded by colleagues who are ecstactic about these 500 points--smiling so wide it looks like they've been half-decapitated.  I give it one to three years now before they're out in the streets screaming for blood.  Bernanke needs to be stopped.  I thought he was a rational person doing his best in a difficult position.  He is not.  He is a fucking madman.  

Thu, 12/01/2011 - 09:31 | 1934529 Irish66
Irish66's picture

Yesterday when Leisman was confused and kept saying this doesn't

help Italy, he was trying to tell you this isn't good and he said 10 times

the biggest discussion is the break up of the euro

Thu, 12/01/2011 - 09:43 | 1934555 LawsofPhysics
LawsofPhysics's picture

Having dealt with corporate funding for my own venture and having married into a family of venture capital folks, I can tell you one thing, these Stanford/Harvard/Yale/Princeton educated financial fucks really believe that they are above all natural laws and that they really are doing God's work. Their arrogance knows no bounds, and why should it, people keep playing along.  Fucking pods.

Thu, 12/01/2011 - 09:47 | 1934562 jdelano
jdelano's picture

But how many times can they ring the dinner bell and show us dogs an empty bowl before we tear their fucking throats out..?

Thu, 12/01/2011 - 10:07 | 1934623 LawsofPhysics
LawsofPhysics's picture

As long as there are immoral unethical dogs that can be purchased on the cheap to fight off you and the other dogs, forever.  Always better to be an owner, if you can.  Think about it.  How many scumbags are out there who will happily do what they are told for a few crumbs from the owners table.  It certainly explains why so many sheeple out there actually consider themselves "rich" and why so few hold PMs.  They still believe that they may get to join the club.  Fucking pods.

Thu, 12/01/2011 - 09:21 | 1934507 MFL8240
MFL8240's picture

.....and the Fed's USD liquidity injection will have failed to achieve anything except to ramp risk higher for a day or two.

 

It may well have a short life but, it was exactly what the Wall Street criminals needed to meet their bonuses for yearend and their friend Bernanke delivered.  When you have insider information, as they do, chances are that yesterday’s charade made them a bundle and now they will reposition for another sell off.  The whole system is so gamed that it makes no sense to discuss or trade it.  Let it collapse and let’s begin the process of jailing these creeps.  

Thu, 12/01/2011 - 09:36 | 1934535 TruthInSunshine
TruthInSunshine's picture

What you say is more true than most realize, as November 30th was de facto year end bonus computation time for many in Manhattan's financial district (aka Welfare/Bail Out Central, USSA).

Paint it to or near 12000 on the Dow 30 (same nominal level as 1999 - 40% loss in value on Dow, NOT including stocks going to $0, such as General Motors, in 12 years), Bernank!

Thu, 12/01/2011 - 09:35 | 1934539 the not so migh...
the not so mighty maximiza's picture

it would be nice to get a list of the insiders that knew on Monday.

Thu, 12/01/2011 - 09:23 | 1934513 Catullus
Catullus's picture

"To prevent a repeat of 2008." 

It's incredible.  They just delayed an ongoing crisis.

Bank Holiday in 1Q 2012

Thu, 12/01/2011 - 10:08 | 1934633 LawsofPhysics
LawsofPhysics's picture

Many already putting capital controls in place.  Very possible, got physical?

Thu, 12/01/2011 - 09:35 | 1934537 WonderDawg
WonderDawg's picture

It's frustrating to try to make a dime in this market. You do all the right things, the TA, study the fundamentals, look at the big picture and everything points to a meltdown. So you get your puts lined up and then, BAM!, something out of left field blows it up. Nothing you can do if you don't have inside information.

So, now, patience. The meltdown is still coming, there's no way around it, but once again, the timing, the timing. Patience. Wait for it, stay alert. Patience, finger on the trigger, patience.

Thu, 12/01/2011 - 10:08 | 1934631 slewie the pi-rat
slewie the pi-rat's picture

liquidity injection 4 the bong

Thu, 12/01/2011 - 09:38 | 1934543 Dick Darlington
Dick Darlington's picture

DJ FINLAND EVALUATING COSTS OF POSSIBLE EURO-ZONE BREAK-UP -OFFICIAL

Thu, 12/01/2011 - 09:40 | 1934548 Irish66
Irish66's picture

Everyone and their mother announcing

Thu, 12/01/2011 - 09:46 | 1934561 lizzy36
lizzy36's picture

Great.Evalution.

Form a Committee. Appoint a Chair. Hold two meetings. Circulate meeting notes for comments. By the time there are "draft recommendations" the EU has gone boom. Saving everyone from having to attend another fricking meeting.

Great. Evalution.

Thu, 12/01/2011 - 09:39 | 1934545 Mister Ponzi
Mister Ponzi's picture

The current record stands at 384.26 bn Euro from June 2010. At this speed, we will exceed this number in the current minimum reserve period.

Thu, 12/01/2011 - 09:39 | 1934547 Cassandra Syndrome
Cassandra Syndrome's picture

You don't Bloomjerk blast about this with "beats expectations" qualifying it. 

Thu, 12/01/2011 - 09:42 | 1934553 sudzee
sudzee's picture

Debt issuance quickly overtaking world GDP or maybe it already has.

Thu, 12/01/2011 - 09:43 | 1934556 The 100 Trillio...
The 100 Trillion Dollar Man's picture

The economic doctorers at the ECB are working with unsterilized instruments.

Thu, 12/01/2011 - 09:45 | 1934559 firstdivision
firstdivision's picture

Sooo...the ECB swaped dollars at 50 basis, bought stocks in pre-market, then sold off on the massive rise and made at least a full point. Way to go Draghi!

 

Thu, 12/01/2011 - 09:56 | 1934594 Sudden Debt
Sudden Debt's picture

Just call the Paper Delivery Guy! He'll fix it!

BY HELICOPTER OR BY DUMPTRUCK, THEY'LL GET THE JOB DONE!

 

Thu, 12/01/2011 - 10:08 | 1934628 Snakeeyes
Snakeeyes's picture
I feel like Will Farrell from Zoolander. "I feel like I'm taking crazy pills!!"

 

The Morning After The Global Central Banks Ride To The Rescue! But The Eurozone’s Leg Is Broken and Central Banks Are Applying Gallons of Bengay As Treatment

http://confoundedinterest.wordpress.com

Thu, 12/01/2011 - 11:44 | 1934957 mraptor
mraptor's picture

Talking about capital flight, do you know that in Obama HIRE act there is provision from 1 Jan 2013, the banks will withhold 30% of every international wire transfer ..... whaaat ? Yes "what" , 30% .... are those people crazy ?!

 

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