Chart Of The Week: European "Fear And Loathing" HitsRecord $1.3 Trillion
The topicof the European "Ice-nine" phenomenon is nothing new to regular ZeroHedge readers: every day we point out the increasing freeze in Europeaninterbank lending (in both the traditional and shadow formats), in variousmoney markets, in commercial paper, in broad fixed income issuance, and in theoverall collapse in market liquidity, so deftly masked for now by dailypolitical and central bank rhetoric, which for all its market kneejerk reactionglory is merely unsubstantiated innuendo and lies - keep in mind that the lasttime the incoherent and disorganized Troika came to an actual decision was July21, with the second Greek bailout, and even that has not yet been implemented!So while hopes still percolates faintly on the surface, the riptide just belowit has grown to record proportions. Presenting the chart that everyone who hasan opinion on Europe, one way or the other, has to see. Here, courtesy ofDiapason's Sean Corrigan, is the epic "Fear and Loathing" in theEuropean banking system, in all its $1.3 trillion glory, or nearly double whereit was when Lehman filed for bankruptcy. Banks may say they trust each other,they may promise the system is viable, they may even submit bogus (ifincreasing) Libor indications to the collusive organization that is the BBA,but the truth is, in vivid color, presented below. Never before have Europeanbanks parked as much of their hard earned cash with the only two remainingpillars of "stability", the Fed and the ECB. And with Dexia about tobe nationalized, and an unpredictable, and highly contagious, waterfall chainof events about to be unleashed on Europe all over again, will the worst casescenario transpire and the ECB's credibility be swept away? If so, prepare forall the money in the world to funnel into the binary number-based safetydeposit box located in the servers of 33 Liberty street. Then the two ultimatequestions become: how long before the Fed's own viability is questioned by theglobal vigilantes (who have finally started asking the right questions), andwho will bail out the central bank tasked with bailing out the world?
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