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.

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AngryGerman's picture

"nothing to see here, pass along"

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.

Irish66's picture

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

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

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.

Irish66's picture

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

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 

Ghordius's picture

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

They are not the same.

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.

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!

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.

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...

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.


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).

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. 

AngryGerman's picture

i don't listen to those fuckers

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 The guy is pretty sharp and makes good calls.

pvzh's picture

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

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.

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).

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....

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.  

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

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.

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..?

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.

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.  

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!

the not so mighty maximiza's picture

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

Catullus's picture

"To prevent a repeat of 2008." 

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

Bank Holiday in 1Q 2012

LawsofPhysics's picture

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

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.

slewie the pi-rat's picture

liquidity injection 4 the bong

Dick Darlington's picture


Irish66's picture

Everyone and their mother announcing

lizzy36's picture


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.

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.

Cassandra Syndrome's picture

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

sudzee's picture

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

The 100 Trillion Dollar Man's picture

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

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!


Sudden Debt's picture

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



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

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 ?!