European Liquidity (Or The Complete Lack Thereof) Summarized In One Chart

Courtesy of Morgan Stanley's Huw van Steenis, we present the only chart one needs to see to understand what is going on in Europe.

And as an added bonus we have two more charts: one which shows how the market has already priced in what has happened so far through bank default risk...

And the second which shows why our base case is now for the ECB to monetize 1.7 trillion euros over the next three years.