Posted on 10/08/2008 9:10:58 PM PDT by TigerLikesRooster
Money market stress intensifies
By Michael Mackenzie in New York
Published: October 8 2008 19:44 | Last updated: October 8 2008 19:44
Stress across money markets intensified on Wednesday despite the unprecedented round of co-ordinated interest rate cuts by central banks aimed at helping banks gain access to funds.
In recent days, central banks have pumped vast amounts of liquidity into the short-term lending markets, only for banks to hoard the cash and not lend to other banks. As well as the rate cuts, the US Treasury tried to alleviate lending problems in government bond markets by making more of its bonds available for collateral.
(Excerpt) Read more at ft.com ...
We have the same people who screwed up everything they touched now taking over our banking system. I won't be surprised if the markets take another big dive tomorrow.
“To be followed by hyperinflation as all they money seeks a home as trust is restored?”
Maybe not. That depends on how much credit destruction is going on inside the banks holding toxic paper. The amount of credit collapsing may dwarf the billions in the bailout.
Doom Bump
So what you are in effect saying is we are up chit’s creek without a paddle?
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It’s even worse, we are DOWN that famous creek without a paddle. The current is against us.
“Libor up despite rate cuts.” Smoking gun?
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