Markets are in full rout as was to be expected after the latest French-German emergency meeting added more clouds to an already dark sky.
But one of the main reasons markets are panicking is the mysterious emergency tender.
One undisclosed bank had to borrow in one shot yesterday 500 million dollars from the ECB something that last time happened in March 2011. The amount borrowed is staggering when compared to previous emergency interventions of the ECB (see graph below). This is clearly indicating that a major bank in Europe is on the edge therefore the panic spree we are witnessing today together with the fading effect of the short-selling ban which has been useful only to buy few days of relative calm.