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IDS World Markets Fri 31st August 07


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Bank of England Loaned 1.6 Billion Pounds at 6.75%

 

Aug. 30 (Bloomberg) -- The Bank of England, acting as the lender of last resort, extended 1.6 billion pounds ($3.2 billion) at its highest interest rate, suggesting commercial banks are reluctant to provide credit after the collapse of the U.S. subprime-mortgage market.

 

The money loaned at the 6.75 percent penalty rate yesterday was the most since July 2, when the central bank advanced 1.93 billion pounds under the standing facility. The facility was last tapped on Aug. 20, when Barclays Plc borrowed 314 million pounds after a loan from HSBC Holdings Plc was delayed. The central bank declined to identify today's borrower or borrowers. The Financial Times reported that it was Barclays Plc.

 

``When people tap into this facility, it can mean only one thing: liquidity is gone,'' said John Anderson, who manages the equivalent of $3 billion of assets denominated in pounds as head of fixed income at Rensburg Fund Management in London.

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Anyone catch Kudlow today?

 

I thought he was going to blow a gasket because Battapaglia and the older English gentleman kept refuting -- and with expertise -- Kudlows Goldilocks Fed Cut Plan.

 

The more venerable gentleman kept saying something about all the "whining and crying about rate cuts while we still have inflation and 4% growth... its rubbish...

won't do any good, its pushing on a string."

 

Battapaglia was right in there with him.

 

HA!  :P

604379[/snapback]

 

Haus....you're on point......the Brit is John Browne and he is VERY good IMO....I can't believe that the Krudster still lets him on the show. But it is for that very reason (John Browne, Battapaglia, et. al.) that I can't completely dump on the Krudster.....it may not be "fair and balanced", but he does give the "other side" an opportunity to present their case.....albeit, I am sure he wouldn't if not told to do so by the producers of the show....

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Anyone catch Kudlow today?

 

I thought he was going to blow a gasket because Battapaglia and the older English gentleman kept refuting -- and with expertise -- Kudlows Goldilocks Fed Cut Plan.

 

The more venerable gentleman kept saying something about all the "whining and crying about rate cuts while we still have inflation and 4% growth... its rubbish...

won't do any good, its pushing on a string."

 

Battapaglia was right in there with him.

 

HA!? :P

604379[/snapback]

 

Haus....you're on point......the Brit is John Browne and he is VERY good IMO....I can't believe that the Krudster still lets him on the show. But it is for that very reason (John Browne, I thought they only released good news. Maybe that wad good news. :lol: , et. al.) that I can't completely dump on the Krudster.....it may not be "fair and balanced", but he does give the "other side" an opportunity to present their case.....albeit, I am sure he wouldn't if not told to do so by the producers of the show....

604437[/snapback]

 

 

They have to give the Bears a couple of minutes so they can claim FAIR and Balanced,or is that another network? :lol:

I don't what caused Joe Battapagliato to switch from a raging bull during most of the tech wreck into a bear as the market started back up. :o He sounds like a stoolie. :D

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Bank of England Loaned 1.6 Billion Pounds at 6.75%

 

Aug. 30 (Bloomberg) -- The Bank of England, acting as the lender of last resort, extended 1.6 billion pounds ($3.2 billion) at its highest interest rate, suggesting commercial banks are reluctant to provide credit after the collapse of the U.S. subprime-mortgage market.

 

The money loaned at the 6.75 percent penalty rate yesterday was the most since July 2, when the central bank advanced 1.93 billion pounds under the standing facility. The facility was last tapped on Aug. 20, when Barclays Plc borrowed 314 million pounds after a loan from HSBC Holdings Plc was delayed. The central bank declined to identify today's borrower or borrowers. The Financial Times reported that it was Barclays Plc.

 

``When people tap into this facility, it can mean only one thing: liquidity is gone,'' said John Anderson, who manages the equivalent of $3 billion of assets denominated in pounds as head of fixed income at Rensburg Fund Management in London.

604412[/snapback]

 

Yup, Barclay's.

 

Barclay's claimed it was a "technical glitch" that caused the need for funds and there are "no liquidity problems" in the UK banking.

 

I'm so relieved.

 

Nothing to see here, folks. Just move along.

 

:ph34r:

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w?s=%5EAORD

 

 

Ooh, quite a determined push north today by the looks but data reverted to zero at market close so I'm unable to quote any figures. Guess there's a mob of tech ppl working on the system...

 

 

So we'll just move right along to UK/Europe:

 

t?s=%5EFTSE

 

t?s=^GDAXI

 

t?s=^FCHI

 

http://finance.yahoo.com/intlindices?e=europe

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I look at the increased volatility these days and these short term swings have been awesome.

 

At the White Shoe firms, I would have to imagine that since the structured finance products Boyz can't be producing the lion's share of quarterly income, the pressure has to fall onto the schlock Boyz at the Prop desk.

 

Black Box hot rodding at it's finest.

 

Should this increased volatility continue with wild 2-4 day extreme swings, Da Boyz schlinging schlocks and fucutures are gonna be relied upon more than ever than Duh Boyz over at Structured Ponzi Division.

 

I would have to imagine the bonus sharing allocations may be in for adjustments as well these firms.

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THe plutocrats taking advantage of a slow market day to make some Happy Print. The talk today will be as good as it gets, and The Street knows that. Equivocation (a market stall) will flush this thing. Maybe they'll levitate it through next Tuesday.

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http://biz.yahoo.com/ap/070831/bush_housing_slump.html?.v=2

 

Bush to Outline Aid to Mortgage Holders

Friday August 31, 6:22 am ET

By Deb Riechmann, Associated Press Writer

Bush to Offer Federal Help for Strapped Mortgage Holders, Aid Borrowers Hit by Housing Slump

 

 

Two weeks ago Ben bailed out the PUT sellers. What's next.

 

Maybe, the PPT will promise to fix people's love life so that everybody will go home happy. Should work.

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