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: