Last week we reported that the Bloomberg news that one of the world's largest independent energy merchants - the secretive Trafigura which trades hundreds of billion in commodities every year - was facing "margin calls in the billions of dollars" meant that the commodity "margin call doom loop" idea floated more than three weeks ago by Pozsar who warned that commodity traders and clearinghouses could be facing a liquidity crisis of historic proportions, was coming true and despite Barclays' earnest attempts to minimize its impact, could threaten broader financial stability and was manifesting itself in broad liquidity squeezes which could be observed in the surge in such unsecured funding markets as the FRA-OIS.

That was just the start, because the very next day Zoltan was proven correct again, after the FT reported that Europe's largest energy traders have taken the place of Europe's insolvent banks in calling on governments and central banks to provide "emergency" assistance to avert a cash crunch as sharp price moves triggered by the Ukraine crisis strain commodity markets.