Reports circulated in the 3am et hour that BNP had admitted that US money market funds were no longer lending to it. The equity market had been holding a bid from late afternoon reports that China was in talks with Italy to take down some of its supply. Here's the interesting aspect, debt markets were little moved.

The Eurodollar complex will be nervous this morning. EDZ11 has been a very good indicator even in its Fed induced suspended animation. The attempt to fire wall Greece seems to have gotten away from slow moving Euro administrators. Any sign of currency sourcing relief and the meaningless equity gyration goes into hyper-drive.

Our observation is as always: In a monetary regime, money is a stock and everything else is a flow.

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