Japan:BOJ pumps 1 trillion yen into money market in sync with ECB, Fed (damage control)

Kyodo News ^ | 08/10/07

[TigerLikesRooster]

Ping!

[Fitzcarraldo]

nikkei recovering a bit at -406.51

[AmericanInTokyo]

16,764 at 3:45 p.m. local, down by nearly 406

[B-Chan]

Hello, inflation...

[Southack]

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.

[jwh_Denver]

That’s some micro thinking.

[B-Chan]

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.

[cgbg]

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.

I see the root cause differently. If bank and mortgage regulators required ten percent down and fixed rates for near prime and sub prime borrowers there would be a lower percent of home ownership but those who owned homes could afford them.

It is the politicians, including Jorge and Congresses of both parties, who wanted to increase the percentage of homeownership as a matter of public policy and loosened the regulation of the lending industry.

Loose credit gets politicians elected--until it gets them in trouble if they stick around too long.

:-)

[endthematrix]

"central banks of Japan, the United States and Europe took a coordinated action"

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)

[TigerLikesRooster]

The highest priority for globalization is globalized finance, head and shoulder above other agendas.

[LjubivojeRadosavljevic]

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, [then] none of this would be happening.

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.

[bruinbirdman]

"The European Central Bank injected 95 billion euros ($130 billion) into financial markets Thursday "

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

[neb52]

“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.

[neb52]

“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.

[bruinbirdman]

"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."

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

[Oldexpat]

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?

[bruinbirdman]

"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

[Mark was here]

You touted the line for those against “urban sprawl”.

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.

[Notary Sojac]

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.