Right on cue, as soon as I write a post saying that big stuff happens when I'm away, a significant story: ECB Fixed-Term Deposit Auction fails. What does this mean? Well, although I don't have a PhD in economics, allow me to explain it to you in layman's terms: the ECB's attempt to "sanitize" (EDIT: correction: STERILIZE - see, if only I had a PhD in economics...) their bond purchases - they were going to distribute capital by buying bonds, and then remove capital by selling term deposits, so that no net money was created - failed. The banks didn't want to buy ECB term deposits with their precious money. Why? Well, it seems that liquidity is pretty pretty pretty tight right now in Euro-land... I don't think that could ever be considered a good thing.
ok - have at it in the comments - I won't be able to respond, but maybe Kartik Athreya will stop by and tell us mortals how to interpret the failed term deposit auction.