“I have one euro left….any takers?”

Draghi stunned by trebling of liquidity demand

On December 23rd last, The Slog analysed the rate of acceleration in private eurobank demand for money from Central Banks. I calculated that pumping in liquidity at this rate would cost the taxpayer $9 trillion by the end of March 2012. I also said the river would soon be dry again. Here we are on the last day of January, and the eurobanks need a trillion euros more. If the banks do take the full trillion, that will make the running total $3.3 trillion since September.

The FT carries a piece this morning which, following interviews with eurozone bank heads, suggests that the 325bn euros set aside by Mario Draghi for his next (imminent) session at the liquidity pump is less than a third of the amount bankers want. There is a pearler of a quote from one of the anonymous MoUs as follows:

“Banks are not going to be as shy second time round, we should have done more first time.”
Shy, eh? I love it: welfare dependent or what?
I first started posting about this a year ago. There are now so many elephants in the eurozone, pretty soon there won’t be any room for people. We’ll have to house Jumbo and his chums in the Treasuries of Europe. But that’s OK: they’re emptying fast.