We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

Sunday, August 28, 2011

Europe's Funding Scramble: Peeking Below The Calm Surface Waters Of French Bank Liquidity (And Lack Thereof)

That European wholesale, and particularly dollar, funding has been "problematic" in past weeks is an understatement. One merely needs to look at the Fed's recent expansion in its transatlatnic swap lines to figure out that someone, somewhere is struggling to meet their USD-denominated obligations. However, is it just one bank, as recent data out of the ECB suggest, or is this merely a symptom of a far more acute underlying cause? Alas, as Barclays' Joseph Abate confirms by looking at the transformation in funding patterns within that most fulcrum of European banking systems - that of France - the threat is far more prevalent than has been speculated. In fact, based on the rapid transition in funding from unsecured to secured lending markets within French banks in general, and one name in particular, it seems that while SocGen stock may have avoided its daily rout courtesy of the extension in the short selling ban, there is a far greater concern for the bank: one of maintaining orderly daily operation funding. And there is little that European stock market regulators can do to restore liquidity, aka confidence, once it starts evaporating. Which it has... although mostly in unsecured markets... for the time being. Should secured funding (ABCP and Repo) wilt next, then it gets really, really bad. To wit: "Bank funding worries have flared up again with the news that the Federal Reserve’s currency swap line with other central banks has been tapped at least twice this month. The trivial amounts borrowed belie significant wholesale funding stresses for some institutions in dollar markets." Let's take a look at what "some"

White House Says Treasury Will Be "Running On Fumes" Shortly

Alasdair Macleod: Gold, politics, and Venezuela

Charting The Latest Iteration Of Moral Hazard

Since this chart from the WSJ sums up petty much everything about the "efficient market hypothesis" or whatever it is those wacky Chicago PhD's call their multi-variable, self-similar, Lorenzian "strange attractor" equations that describe human irrationality to the dot, there is little need for commentary (those who wish to do so, can read more about it at "Fed Faces Old Foe as Hazard Returns")

These Threats Will Not Collapse America's Economy

Your Personal Declaration of Independence

International Forecaster August 2011 (#8) - Gold, Silver, Economy + More

The Many Collapses of Keynesianism

100% Money

Posted by: thetrader

Post date: 08/28/2011 - 17:39

What about less Debt?

3-2-1 Global Meltdown

Housing Time Bomb Goes Tick Tock Tick Tock

Do The Maths

Economic Stabilization Fund.

Market crash 'could hit within weeks', warn bankers

Big Changes Afoot at U.S. Mint? The articles begins: "The year 2013 might go down in the annals of numismatics as significant as 1933 when gold coinage was suspended or 1965, the year copper-nickel began to displace the former silver coinage." Got your nickels yet?