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The European Dollar Funding Crunch Is Back: Fed Does Another $500 Million In USD Swaps This Time With The ECB
And now for some disturbing news out of the ECB, just in time for tomorrow's sub-1% GDP announcement and Jackson Hole disappointment. Unlike last week, when the Fed conducted a $200 million FX swap with the Swiss National Bank, this week the bank in dire needs of dollar funding is the ECB itself... and for two and a half times than last week. Furthermore, unlike last week, when we knew in advance that at least one European bank was experiencing a dollar liquidity event, this time the update from the ECB indicated no USD-based liquidity constraints: the $500 million in 7 day USD punitive loans quietly expired and everyone once again assumed that Eurozone liquidity is back to normal. It isn't. The question once again now becomes, who finds themselves in a dollar funding crunch?
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Peanuts.
This nonsense won't end until they are forced to stop. I don't think the "can", can be kicked down the road much further.
http://silverliberationarmy.blogspot.com/
"war will bring us out!"
— perfessor krugman
http://azizonomics.com/2011/08/24/the-problem-with-military-keynesianism/
It's all lulz when the velocity of money causes it to get ahead of itself. It is like watching good slapstick as it tumbles head-over-heels up the hill...
Hmmm, liquidity crunch in dollars, reminds me of this excellent article:
"This is very important: Once hyperinflation commences it is characterized by a running shortage of cash, even though it appears like the opposite to the outside observer. The currency collapses in value against economic goods because the debt and the credit collapsed. There is no credit, only cash, and there is a shortage of cash for everyone, including the Elite and the government. So they, the Elite/government, print and print for their own survival while saying it is for yours."
http://fofoa.blogspot.com/2011/04/deflation-or-hyperinflation.html
TPOG
While supply remains higher than demand, there won't be hyperinflationary pressure until there is supply destruction.
This time the money is mostly electronic, so the crash will be faster, no need for physical cartloads.
Don't roads have a place where it's no longer a road? Where's that dead end sign?
Monkeys
Monkeys swapping worthless shit FIAT paper currencies electronically. Swapping my worthless US Dollar electrons for your worthless Euro electrons.
9 tonnes of gold peanuts lol
Fuck You USD!
Fuck You ECB!
Fuck Unsterilized!
Took Comex up on their discount gold offer this morning, another ounce next to the ol' .40 hp. I haven't felt like I was buying a gun until, well the last time I bought a gun. A printed sign on the counter said over $1500 and you have to show ID, $3000 and the ID is recorded. Financial weapons indeed. Their fee structure also "changed" ~2x from the last transaction.
Astute observers will no doubt notice glaring signs that we're approaching some massive inflection point in precious metals prices, I really, really hope I've just pissed a bunch of money down the bubbly-peacekeeping drain.
I can't vote for both :O(
SocGen, bitchez!
A Rotchschild isn't worth their weight in gold if they can't get some Bernank Luvin'
500 million here, 500 million there...before you know it, we're talkin real money:-(
Feds = BIS
bullish!
Coincidence with short-sell extension....I think not!
Sosi Genital, that would be "suck genitals" in russian
more accurate sosi khui or sosi pizdu
And with all the cheering earlier today abt the disappearance of the USD swaps.
Now what did the five fingers say to the face?
SLAP!
'Cocaines a helluva drug'!
fuck yo couch!
A Chapelle fan! I'm saving Clayton Bigsby for trav.
'Jackson Hole disappointment'...damn straight...they CANT deliver on QEuphoria, theyre screwed at this point. Temper tantrums all around tomorrow.
The Black Fade, Nouriel Roubini, is speaking live on CNBS - T minus 30 seconds
How do you say "easing" in Euro-ese?
Uuuuuuuuurrrrrrrrrgh, kerplunk.
European liquidity drying up quick. Maybe days instead of weeks from the next rout.
There are some prominent 'types' across the pond (in the UK) who claim the Bangers&Mash Omen is flashing bright red.
Bernank's/Trichet's Credit Crunch 2.0
110bp for a seven-day use of USD with EUR collateral is highway robbery.
110 bps annualized. So the 500 million will cost about $100k over the week. That's less the the wages of a Premiership footballer in the UK.
It's the rate, not the dollar cost. It's just plain weird when private banks claim to be able to fund for 7 days well under 100bp but the central bank that backs them can't.
Swaps, bitchez
Paper circle jerk. Who cares anymore. Just raise margin on gold so its back to 1400 please and then I can unload my brokerage account into what's left of physical supply. At the end of the day all this jacking off is gonna do is give people arm ache . These fuckers are out of juice and no ones getting a happy ending.
So is this literally 500 million in cash for banks that have to hand out money for those trying to exchange their money into dollars or withdraw cash dollars from European banks?
oui bossom-Waffen
hehehehe....i luv jean claude......raised rates twice.....about 2 ease twice.........touche bitchez
hehehehe....i luv jean claude......raised rates twice.....about 2 ease twice.........touche bitchez
Van Damme....
In 2008 I would have guessed some German Landesbank. Now I'd guess: Some crap Volksbank in Austria that's about to go belly up on toxic Eastern European CHF loans.
They should buy US treasuries from China. China don't want them, Europe needs US dollars. Win/Win.
Roubini says Bernank is low on policy 'booooolits.'
what's up with bini's head shots? you can tell he knows his stuff cuz one of his eyebrows is raised and he's not smiling
Look at Maria Big Ass Bartiromo.
She's literally pining for QE3, almost on her hands and knees, rubbing her meaty thighs together.
lol..."meaty thighs"
Roubini is begging Obama to 'stimulooos' the economy.
He's blaming Republicans for all the economies ails; no mention of Democrats like Bwaney Fwank or Chris Dodd, let alone regulators, or Geithner or The BenBernank.
Roubini is a whore.
He's the whore of Babylon for the month.
I'm putting Roubini in the Whore House of Shame.
haha!
Wait,... wait.. Marie has meaty thighs?! Say it aint so?!
Havent you seen Buffet doing the same today morning ? He knows his stuff too.. the only difference is he smiled..
He's more interesting when he's drunk...
Please raise AU to 100% margin. Shake out the weak. I have dry powder ready to add to my position at a moments' notice.
Then, let all of this mother fucking paper fail. Let it fail, let it fail, let it fail. I am so sick and tired of the bullshit. I will applaud the coming rioters in the Eurozone, because all of this is the direct result of propping up insolvent banks and cunt politicians who can't read a balance sheet.
I feel bad for legitimate businesses and savers who will be wiped out. But a massive enema is the only way to clear this shit out.
Will WSJ publish this next week?
What the Fuck are they giving us..NEWLY PURCHASED SOVEREIGNS BONDS?? Do not tell me that Ben is not secretively repoing out the dollars and this is a straight currency exchange. We already learned from the disclosures what he is upto. Who on Earth would buy the Euro which is bound to fail and not grab as many dollars and metals as possible?
After massive QEs and ZIRP the dollar has nowhere to go but up which means the stock market is headed downward as the EUR implodes.
^ This. The US $dollar$ is the ultimate in counter-party risk currencies, backed by nothing except $100 trillion in unfunded liabilities. If you are getting out of Euros and into $, you just know the Euro is beyond fucked, a true Weimar Republic currency. Never forget German newspapers told its citizens to get out of Euros and to buy gold.
memory of economic disasters is non-existent in the US, but very present in Euro countries. Germany especially so.
.. this is why the DAX is going to lead the Euro disaster downwards
Smart but DAX is the only thing that prevents the euro disaster.
" The US $dollar$ is the ultimate in counter-party risk currencies"
And that should scare everyone because when our rates go to the moon they will all know why the world is looking to metals as the reserve currency. Bottom line is at this stage of the game IT DOES NOT MATTER HOW MUCH THEY PRINT because temporary stability is a falsity and the question on the horizon is when do the bailouts and QEs come to an end..even if they can keep this up for 5 years+ it must end either via massive bubble or force so all this supposed "Liquidity" is being offset by those seeking hard assets waiting for the unavoidable collapse. The deflation spiral must come or the Hyper followed by deflation either way the more they print the more rushes into safe metals waiting for the welfare to end. AND THAT is why central planning cannot exist perpetually.
Ben needs to raise rates to 8% and now.
Yes...the Temporary Liquidity Facility will be replaced by the Very Short Term General Facility which in turn will get urgently replaced by the Momentary, Almost Totally Forgettable, Really-Nothing-At-All, 4-Quadrillion dollar Loan Facility (open for biz 24/7, credit cards and barter accepted)
Speaking of which, how much is the FED up to in "Other Assets" these days?
Why three lines for the ECB? I really do not know. :-)
Tomorrow Friday again. This news always seems to pop up just 1 day before the weekend so tomorrow the markets will crash again... unless wallstreet will be flooded and trade will be suspended. Strange how the flooding would be good news...
The United States of Europe is engineered and it's forming in the front of our eyes. Nothing is real.
But what are the implications?
There are Dollars, there are Euros ...and there's Secret Dough (TM).
That's the stuff that somehow ends up adding up to trillions in the hands of private sector banks, brokers, dealers and money market funds.
Pssssst! Want some Secret Dough?
Somebody help me please: FX swap lines are reciprocal right?
Roubini was actually kidnapped at the Maine conference and replaced with his Manchurian Candidate body double, who tweets all day long about gold being a bubble, and ZH blogosphere is a pit of unpatriotic Jacobins
lolz
So we should all buy treasuries as our patriotic duty... RFLOL
FFS the dude can't even speak english
No shit. wtf happened to that guy. He used to be sort of OK - on the same page as Marc Faber - just without the brains, humor, or kick-ass track record, but now he's just another cock-gobbling whore for the Greater Keynesin failed experiment.
Italy announced today they are releasing 500 million dollars of Libyan assetsaccording to what I just heard on RT
Also at
http://www.nextnobelprize.com/2011/08/a-wat-to-sarat-libya/
Coincidence?
lol
Ding Ding Ding ! We have a winner !
I also heard a short quip by a guest on Fox that the EU was kicking in $500 million as seed money to help stablizing the infrastructure. I wonder if this is different than the frozen Libyan funds being freed up?
Hmmmm.
that whore roubini lost all credibility with his pathetic bearish calls on gold over the past few years......the crossdressing nouriel should give dennis fartman a manjob
a billion here, a billion there, and pretty soon you talk about some banks going down the drains..
markets will finish green 2morrow
vol is gonna crunch watch
All I know is that tomorrow is going to be a very wierd day....up down...down up...all over the board as people try to decipher what was said....and to try to act on it...it will be so vague that I think noone will know the exact jist of what was just said....and that my friends is why you should worry...they can´t tell us the truth....they have to hide what they are doing...windows here..doors there....whole ships full of it....we will never know...
I think the Bernankster will actually announce some form of QE3 lite. He just has to throw something on the table.
dont forget the mirrors
thank god for those stress tests demonstrating that there is no undue risk in the banking systems and that they can withstand severe adversity....let's lower reserve requirements especially since they are so passe.
I'm fed up with the Fed and Bernanke's hanky panky.
Question. What happens if the US government just outlaws possesion, or transacting in gold down the road, and only accepts a "nre currecny" (not backed by gold) as the only form of transacting?
You move out of CONUS,and take it w/you.
You can leave many ways, air is not the only way to leave, just make sure you have a current passport, if needed.
Would be the last resort going Commercial Air, no way you take PM's out that way.
If O wins in '12, I am leaving period.
"Question. What happens if the US government just outlaws possesion, or transacting in gold"
If I'd have to guess, something similar to what happened to the drugtrade when it became illegal. The unintended consequences will outweigh the intended ones.
- The value of the stuff would go way up.
- It would become way more profitable to deal in it.
- Enforcing the law on it would become very very costly.
- It will open up new revenue streams for organised crime.
What'd I do to deserve the Reserve?
I am hoping The Bernank hands out $10 Trillion for the next QE...I mean why has he been so cheap?
I am Jack's complete lack of surprise.
When this house of card called Western Banking comes down, it will be sudden and painful.
Having a discussion with a roommate on this topic. Can someone explain more specifically (Tyler?) why this event is ominous. I understand the purpose of the swaps in regard to borrowing/lending in other currencies - which makes sense. So the Swiss National Bank needs to swap Francs for USD. WIth major Swiss banks operating in the US I'd expect to see this type of transaction. Thanks...