Not really, record amounts of money are being left overnight by European Banks with the ECB. Effectively no banks in Europe will lend to one another, such is the fear that they are all insolvent. This is exactly like 2008 after the Lehmans crisis.
The ECB has extended half a trillion euro's of loans in an effort to overcome this liquidity crisis; but of course the banks know that it is not a liquidity crisis, but a solvency crisis. Many of the European banks are not going to survive a fall out of the Euro of Greece (which is nailed on for 2012), let alone Ireland or Portugal. As such, and with the opacity of the shadow banking system not helping make real positions clearer (together with the derivatives markets too), Banks don't know who is going to make it - there are strong rumours that even Deutshce Bank, Societe General and Credit Agricole are too exposed to Greek debt to avoid nationalisation or bankruptcy!
So 2011 is ending with the crisis at full force - perhaps 2012 will see a resolution to this ongoing mess?
