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When the ECB announced last week that it would expand the universe of eligible collateral for use by Eurozone institutions to include up to €50 billion in cash cash, it - and the market - hoped that the severe collateral shortage manifesting itself in an unprecedented squeeze in the repo market would be alleviated. As a reminder, last Thursday the ECB Governing Council decided that Eurosystem central banks will have the possibility to also accept cash as collateral in their PSPP securities lending (SL) facilities without having to reinvest it in a cash-neutral manner.

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Stock Valuations Enter “Crash” Territory

Posted with permission and written by John Rubino (CLICK HERE FOR ORIGINAL)

As we keep warning, the War on Cash is set to accelerate.

If you want proof of this, consider that India has not backed down on its cash ban in any way shape or form… despite the fact that the cash ban has been a complete disaster politically with widespread protests.

Why?

Because it is accomplishing the Elites’ Central Planning goals:

While retail sales came in disappointing for the month of November with October revised downward, the Fed, which is certain to hike rates, got some help guiding its decision when moments ago PPI, or the Producer Price Index for Final Demand came in far hotter than expected, rising 0.4% in November, well above the 0.1% expected, and above last month's unchanged print. On an annual basis, PPI jumped 1.3%, the largest rise since moving up 1.3% for the 12 months ended November 2014.

Retail Sales growth for November rose just 0.1% MoM, missing expectations of a 0.3% jump, and saw notable downward revisions to October's surge. The biggest drover of the weakness was sales of motor vehicles tumbled 0.5% MoM in November.

October's 0.8% growth surge was marked down to just 0.6% and November rose just 0.1% MoM...

Leaving YoY growth sliding back into its average for the year - no escape velocity post-Trump...