Lender of Last Resort at the Last Resort

http://www.reuters.com/article/2012/08/06/us-china-banks-idUSBRE87501T20120806

Viva La Bolsa

Spanish housing prices are down over 11% for the year and lending to the banking system is coming from, well, outside the banking system from the Eurosystem which, somewhere in the ether, is being supported by a dollar swap line from the US Fed whose balance sheet is a toxic landfill


http://www.creditwritedowns.com/2012/08/target2-replacing-other-sources-of-funding-for-bank-of-spain.html

Benchmarks and Bordellos

http://www.washingtonpost.com/business/economy/new-york-fed-became-aware-of-banks-manipulating-key-rate-in-2007-document-shows/2012/07/13/gJQAesT9hW_story.html


“As much as $800 trillion in financial products are pegged to LIBOR, so any manipulation of this rate is of serious concern,” Neugebauer said in a statement Friday. “We’ll continue looking into this matter to determine who was involved in this practice and whether it could have been prevented by regulators.”


Or $80 billion per basis point that LIBOR wiggles in the dark of the settlement night for an OTC market short premium