I posted over the weekend about Chairsatan Bernanke’s straight out lie regarding bailing out Europe. Today the FRBNY updated it Foreign Exchange Liquidity Swap Operations data and the down trend has been continuing. At the same time, a quick glance at the ECB’s Deposit Facility levels have been reaching new highs. Also, pulling the Daily Liquidity Provision data shows a marked characteristic change in the levels. You’ll notice in the first chart I’ve circled the groupings of 4 weeks where levels were stable before adjusting to new levels. I would predict next week the ECB will be slightly dropping their use of the FX Liquidity Swap Operations facility.
FRBNY FX Liquidity Swap Operations:
These swap facilities respond to the re-emergence of strains in short term funding markets in Europe.
ECB Deposit Facility:
These data contain ex post data (in EUR millions) on volumes of: 1) open market operations; 2) recourse to the marginal lending facility; 3) use of the deposit facility; 4) autonomous liquidity factors; 5) current account holdings; and 6) reserve requirements.
ECB Daily Liquidity Provisions: