ES -- DX/CL -- isee -- cboe put/call -- specialist/public short ratio -- trinq -- trin -- aaii bull ratio -- abx -- cmbx -- cdx -- vxo p&f -- SPX volatility curve -- VIX:VXO skew -- commodity screen -- cot -- conference board

Tuesday, December 18, 2007

 

ECB injects $500bn


it's an unfathomable number to put behind coordinated liquidity injections. it's beyond large. and it won't help in the end.

mish:

Impact of the ECB's move on the US yield curve was negligible. The short end of the curve actually rose a couple of basis points. Banks in the US are continuing to hoard cash.


because, as has been noted, this is a solvency crisis, not a liquidity crisis (though liquidity has certainly been one of the casualties). banks cannot borrow their way into capital-strong positions, and bank undercapitalization is the core issue.

what it likely will do, however, is push a boom into equity bids between here and year-end. welcome to your santa claus rally -- i hope.

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