On Thursday the 1st July 2010 European banks will have to pay 440billion (EUR) of 1yr funds back to the European Central Bank, with slight extensions (possibly a week); so on the 1/7/2010 440billion euro will be sucked out of the European interbank system.
With EU banks all ready started to be locked out of liquidity with slowing economies shrinking lending rates and bad loans getting worst. Europe is 100% going to stay (or go back, which ever way you calculate recessions) in a recession. With no light at the end of the tunnel.
This is when FX traders, speculators and Hedge Funds 'will go for the jugular' of the EUR.
This also when the forces of the market will overwhelm the ECB propping up of the EUR and sink it.
*update G8 rumour: European taxpayers will offer liquidity to EU banks. They have been (banks) zombies for over two years (lending rates were at the 1.00% range) and now the ECB/IMF may ask the G8 countries to create a massive bank bailout package (temp liquidity)!
You can just hear those riots.
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