Posted on 08/09/2007 11:12:08 PM PDT by TigerLikesRooster
BOJ pumps 1 trillion yen into money market in sync with ECB, Fed
TOKYO, Aug. 10 KYODO
The Bank of Japan pumped 1 trillion yen ($8.5 billion) into the money market Friday after the European and U.S. central banks supplied liquidity in efforts to calm subprime-mortgage turmoil in global financial markets.
The central banks of Japan, the United States and Europe took a coordinated action to provide liquidity for the first time since the Sept. 11, 2001, terrorist attacks on the United States. The size of the BOJ's money injection was larger than usual, according to money market traders.
The European Central Bank injected 95 billion euros ($130 billion) into financial markets Thursday to alleviate fears of a credit crunch as worries about the U.S. subprime-mortgage market spread to the European economy.
Hours later, the Federal Reserve Board provided about $24 billion to the money market through the Federal Reserve Bank of New York.
The turbulence in global financial markets was triggered by Thursday's announcement by French banking giant BNP Paribas that it has suspended withdrawals from three of its investment funds exposed to high-risk subprime loans.
Japanese Finance Minister Koji Omi said at a press conference Friday morning that the action by the central banks was ''quick and proper.''
''The overall global economy is sound and the Japanese economy also keeps growing in a stable manner,'' he said. ''I am personally not concerned about this issue (of subprime woes) very much, but will carefully monitor future developments.''
With the spread of credit crunch fears, market expectations that the BOJ will implement a rate hike in the upcoming Aug. 22-23 policy meeting have receded rapidly.
Omi urged the Japanese central bank to come up with concrete steps to deal with the situation and support the country's economic growth from the monetary policy side.
Tokyo stocks plunged almost across the board Friday morning as financial issues were hit by fresh concerns about credit markets.
The 225-issue Nikkei Stock Average dropped 448.64 points, or 2.61 percent, in the morning to 16,721.96. Stocks opened sharply lower following the previous day's dives in European and U.S. equity markets.
New York stocks nosedived Thursday, with the Dow Jones Industrial Average plummeting more than 380 points, the largest fall since 416 points registered in late February on the occasion of global stock plunges.
In Tokyo, the benchmark long-term interest rate also fell Friday morning to briefly touch a two-and-a-half-month low of 1.705 percent, with investors buying Japanese government bonds that are considered less risky than other financial products.
In Japan, financial institutions' losses on the subprime-mortgage problem have not been clarified yet and the BOJ and the Financial Services Agency have been trying to grasp the overall picture. ==Kyodo
Ping!
nikkei recovering a bit at -406.51
Hello, inflation...
Nope. Worse. Deflation.
The Fed waited too long to cut rates. Home prices are going down. In contrast, if you had inflation, home prices would be going up.
That’s some micro thinking.
No inflation now. Maybe no inflation tomorrow. But sooner or later, all that lovely liquidity has to go somewhere...
This is a paper crisis. The houses are all still there — it’s the overvalued paper that they were bought with that is plunging in price. I feel sorry for people who took those crazy mortgages, but “if it seems too good to be true, it probably is”. We bought our small home with a fixed-rate mortgage for that very reason. After we’re done remodeling it, it will have increased in value by approximately 75%; at that point we can either keep living in it (the mortgage payment is cheap, and taxes are low on a solidly- built, 1952-vintage inner-city brick house of 1300 square feet) or sell it and buy another quaint fixer-upper.
The root cause of this problem is the very structure of our suburban-based population distribution. If people were willing to live in modest houses in established city neighborhoods instead of in ostentatious cardboard mini-mansions fifty miles from town, none of this would be happening. But that’s a different thread. As for Team Chan, we’re just going to keep building our little equity stash and fixing up our cozy little house while the storms rage around us.
What a tinfoil conspirosy! Oh wait...
"The Power of financial capitalism had [a] far reaching plan, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalistic fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences."
"Each central bank sought to dominate its government by its ability to control treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence co-operative politicians by subsequent rewards in the business world." -Carrol Quigley, Tragedy and Hope, 1966
(a globalized and integrated world - which is coming, one way or the other. - Hillary)
So tell me, how would you get others to do what YOU would like them to do? In other words, your proposition is akin to government planning. Of course, you can correct me if I'm wrong.
US - $12B, Japan $8.5B. Unprecedented? What does ECB know that they are not saying?
Oh, yeah, all those new IPOs that went to the London Exchange because it was easier (and less transparent) than SarbOx.
Europe wants to play with the big boys? Let them pay to play.
yitbos
“So tell me, how would you get others to do what YOU would like them to do?”
Convince them, as Mark Davis would say, in the Market Place of Ideas.
“What does ECB know that they are not saying?”
I keep hearing that they are the more conservative of the Central Banks. If true than the size of their dump is even more telling. Probably looking to protect the good debt from being snowballed and to keep the cash available for more good mortgages to be issued to keep the cash flow going.
Chan Clan is wise.
The godless commie leftists will tell you to get/take it now; there is no tomorrow. Then they will either slit your throat and take it or tax you to death and take whats left.
yitbos
It is Friday and it will interesting to see if the sell-off continues and prices plunge at the end of the day.
Could it be Black Friday?
2:00 AM PDT
Down and going down more as I type. Guess I'm not a ticker tape.
Nikkei: -406
CAC: -82
FTSE: -97
DAX: -111
DJSTOXX: -61
HSI: -647
yitbos
Pity, you don’t value freedom.
Where others may see urban sprawl I see others following their dreams.
Those who want to drive by an empty field outside of town, can purchase it, then they can feel good about driving by it once in a while.
Home prices are going down for the same reason the NASDAQ came down from 5,000 - namely, the supply of greater fools finally dried up.
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