Mies van der Rump Posted September 18, 2008 Report Share Posted September 18, 2008 Got 247 billion? Central Banks Offer Extra Funds to Calm Money Markets (Update4) By John Fraher and Simon Kennedy Sept. 18 (Bloomberg) -- The Federal Reserve almost quadrupled the amount of dollars central banks can auction around the world to $247 billion in a coordinated bid to ease the worst crisis facing financial markets since the 1920s. The Fed increased the amount of dollars that the European Central Bank, the Bank of Japan and other counterparts can offer from $67 billion ``to address the continued elevated pressures in U.S. dollar short-term funding markets.'' The Bank of England, the Bank of Canada and the Swiss National Bank also participated. http://www.bloomberg.com/apps/news?pid=206...nF2E&refer=home Link to comment Share on other sites More sharing options...
Lemur Posted September 18, 2008 Report Share Posted September 18, 2008 money fer nuthin and upticks fer free 690039[/snapback] Think this guy is a gold bug shorty. http://www.rallymonkey.com/video/kenindex.swf Link to comment Share on other sites More sharing options...
DrStool Posted September 18, 2008 Report Share Posted September 18, 2008 hey, did anybody else catch karl denninger's latest, here? he states that the treasury printed $40 bil de novo, because the fed balance sheet was empty.? and, with the printing of currency to prop aig, the first step down the hyperinflation road was taken. this press release was his evidence:? http://www.ustreas.gov/press/releases/hp1144.htm this scares this kitty.? did they really print up $40 billion in 'special treasury bills'? is this just karl losing it, or is this panic time? (edit:? trying to get the image right) 690025[/snapback] He's got it backward. I gave as a full an explanation as I could in yesterday's Wall Street Examiner Professional Edition Fed Report. http://wallstreetexaminer.com/?p=3151 The idea that the Fed's balance sheet is empty is something that mystifies me. The Fed's ability to expand its balance sheet is infinite. The Fed can do whatever it wants in this regard. It's not tied to some reserve requirement. It can print money endlessly with which to buy assets. It has CHOSEN NOT to expand its balance sheet. This is a far cry from being unable to. The level of ignorance on this issue is asspounding! It's like no one had an Econ 1 course in the freshman year of college. I can't understand why people running financial websites don't get this. Now the other thing is this, as I asked last night. Why WOULDN'T the Treasury borrow when it was free to do so. The Fed and Treasury are blessed with the best of all worlds right now. The market has afforded them the opportunity to fund these rescues at zero cost, and without having to print money. On the other side of that coin, that reveals just how deflationary this environment is. In my view, if the Fed wants to stop this meltdown, it SHOULD PRINT money. The actions it is taking are EXACERBATING the problem! All of which I have discussed in infinite, and I guess infinitely boring, detail in the Wall Street Examiner Professional Edition Fed report. http://wallstreetexaminer.com/?p=3151 And for those of you who are not already subscribers, I invite you to join NOW! There has been no more important time in our history for you to have an understanding of these issues. Be PREPERED! Stay ahead of the herd! Link to comment Share on other sites More sharing options...
DrStool Posted September 18, 2008 Report Share Posted September 18, 2008 Good Morning! Welcome to Intraday Stool! Thanks to aussiebear for her daily opening! You can join the discussion by registering (PG rated user names only, please) and posting here as well. Registration is easy. Just click the Register link above, enter your email address (which you have the option to keep confidential), and enter a user name. To keep out spammers and scammers, I'll send you an email with a few Monty Python type questions. Just reply with your answers, and I'll approve your registration as soon as I receive your reply. Unfortunately, due to the barrage of spammers using Gmail and certain European email providers, including yahoo.co.uk, we cannot process any registrations associated with a gmail address. In that case please use the email address from your isp, or some other provider. If you have questions about how to register and post, use the Help link in the menu bar at the top of the page. If you know others who might be interested in joining us, use the email to a friend link above the thread. Many tanks for joining us! Doc Try the Professional Edition risk free for thirty days. If, within that time you don't find the information helpful, I'll give you a full refund. It's that simple!Click here for more information. Subscribe to the Wall Street Examiner Professional Edition Precious Metals Daily, just $39 quarterly. Try it risk free for 30 days! Get this indispensable daily analysis and support the Stool! Link to comment Share on other sites More sharing options...
Jetlag Posted September 18, 2008 Report Share Posted September 18, 2008 Hey Doc, nobody?s TA could have suggested a day like today.? Keep doing what you know.? I read it every day.? I would also remind that you have been right-on with your forecasts for forced liquidation of everything as investors scramble to raise cash.? And I?m sure you are also right that at some point this need to raise cash will hit the trashuries too. I just want to point out for everyone, beyond TA, I have posted several times that gold looks like it is moving according to confidence and fear.? You can put a tack on the gold chart on these dates: 3/17 ? BSC bail-out 7/15 ? Paulson pledge to backstop FNM & FRE 9/8 ? FNM & FRE bail-out As these events have unfolded, fear rose until these points in time when confidence was restored.? Gold would then get spanked and sent to his room.? But now, it seems, the events of the past weekend and this week have not restored confidence.? Actually, I think its fair to say that fear has turned into panic. (that chart of the 3-month yield is truly unbelievable!) http://www.bloomberg.com/apps/news?pid=206...Sdmg&refer=home Where does gold go next?? I say keep your finger on the pulse of confidence. (just to cover my butt, I am in no way, shape or form insinuating anything about anyone's analysis or opinions.? I just pointed out a correlation as I see it, and nothing more). 690036[/snapback] Cool Gloomberg link, tanks. "While TV camera crews staked out American International Group Inc.'s Wall Street headquarters following its takeover by the U.S. government, Jules Karp was quietly trading gold coins in ``unbelievable'' numbers from his basement dealership across the street. " It's now evident that Hank&Ben should have let Bear Sturds fail and keep their powder dry for more important things. The price they accepted after announcing it for two bucks was just stupid. The idiots who deregulated are now the chumps that will reregulate. That's just stupid. I know that burning of the reichstag is an over abused analogy but I don't see any other more fitting to describe this stupidity of rewarding stupidity. Link to comment Share on other sites More sharing options...
Jetlag Posted September 18, 2008 Report Share Posted September 18, 2008 Small Investors just can't get bearish enough Are you BULLISH? AAII members are: (as of 9/17/2008) Bullish: 27.21% Neutral: 18.37% Bearish: 54.42% Link to comment Share on other sites More sharing options...
astral mike Posted September 18, 2008 Report Share Posted September 18, 2008 Well, it was early and the reporter was breathless. no worries, i was not aware of the magnitude of today's coordinated global pump untill i read your post, and as Mies van der Rump's last post shows, today's total is now $247 Billion, it seems to be changing by the minute... and exponentially by the day! i wonder what doc makes of all this, and the (+/-) ST/LT consequences of it all... ? Link to comment Share on other sites More sharing options...
Jetlag Posted September 18, 2008 Report Share Posted September 18, 2008 Dear Central Bankster, Thanks for sponsoring a new short entry point. Your actions are of the utmost importance to support my successful trading. Sincerely, River Boat Trader p.s. Please send more money as the current amount, so far, failed to materialize the desired effect. 690044[/snapback] Thank you very much "The Federal Reserve almost quadrupled the amount of dollars central banks can auction around the world to $247 billion in a coordinated bid to ease the worst crisis facing financial markets since the 1920s. " http://www.bloomberg.com/apps/news?pid=206...apb4&refer=home It's very kind of you to lend a further 67Bi, although we really think a trillion should do the trick. Please dispatch the jolly green giants. Sincerely, The Riverboat trading Ladies Link to comment Share on other sites More sharing options...
astral mike Posted September 18, 2008 Report Share Posted September 18, 2008 Thank you very much "The Federal Reserve almost quadrupled the amount of dollars central banks can auction around the world to $247 billion in a coordinated bid to ease the worst crisis facing financial markets since the 1920s. " http://www.bloomberg.com/apps/news?pid=206...apb4&refer=home It's very kind of you to lend a further 67Bi, although we really think a trillion should do the trick. 690056[/snapback] Link to comment Share on other sites More sharing options...
DrStool Posted September 18, 2008 Report Share Posted September 18, 2008 Release Date: September 18, 2008For release at 3:00 a.m. EDT Today, the Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank are announcing coordinated measures designed to address the continued elevated pressures in U.S. dollar short-term funding markets. These measures, together with other actions taken in the last few days by individual central banks, are designed to improve the liquidity conditions in global financial markets. The central banks continue to work together closely and will take appropriate steps to address the ongoing pressures. Federal Reserve Actions The Federal Open Market Committee has authorized a $180 billion expansion of its temporary reciprocal currency arrangements (swap lines). This increased capacity will be available to provide dollar funding for both term and overnight liquidity operations by the other central banks. The FOMC has authorized increases in the existing swap lines with the ECB and the Swiss National Bank. These larger facilities will now support the provision of U.S. dollar liquidity in amounts of up to $110 billion by the ECB, an increase of $55 billion, and up to $27 billion by the Swiss National Bank, an increase of $15 billion. In addition, new swap facilities have been authorized with the Bank of Japan, the Bank of England, and the Bank of Canada. These facilities will support the provision of U.S. dollar liquidity in amounts of up to $60 billion by the Bank of Japan, $40 billion by the Bank of England, and $10 billion by the Bank of Canada. All of these reciprocal currency arrangements have been authorized through January 30, 2009. OK, what wee need to see now is whether they take this $180 billion from the SOMA, which would pile additional devastation on the US market, or if they print it. I'm not sure what the outcome of that would be. Whether it results in inflation or not depends on what the players do with the money. If it's used simply to carry existing obligations the inflationary effect should be nil. If it goes beyond that, it could reignite a powerful wave of inflation. Too early to say. First step will be to see how the Fed generates the cash to buy the other currencies. Very interesting and very confusing. I really can't get my brain completely around this yet. Probably never will. Link to comment Share on other sites More sharing options...
Jetlag Posted September 18, 2008 Report Share Posted September 18, 2008 "The difference between what banks and the Treasury pay to borrow money for three months, the so-called TED spread, widened 11 basis points to 313 basis points today. That's higher than the 300 basis-point spread reached Oct. 20, 1987, when stocks collapsed around the world on what became known as Black Monday. " http://www.bloomberg.com/apps/news?pid=206...Dr6s&refer=home Link to comment Share on other sites More sharing options...
astral mike Posted September 18, 2008 Report Share Posted September 18, 2008 OK, what wee need to see now is whether they take this $180 billion from the SOMA, which would pile additional devastation on the US market, or if they print it. I'm not sure what the outcome of that would be. Whether it results in inflation or not depends on what the players do with the money. If it's used simply to carry existing obligations the inflationary effect should be nil. If it goes beyond that, it could reignite a powerful wave of inflation. Too early to say. First step will be to see how the Fed generates the cash to buy the other currencies. Very interesting and very confusing. I really can't get my brain completely around this yet. Probably never will. 690058[/snapback] Surely the central banks must be tapping into thieir $US reserves. ECB/BOJ/UK/Canada/ et el can't just print $US dollars. Link to comment Share on other sites More sharing options...
Jetlag Posted September 18, 2008 Report Share Posted September 18, 2008 Surely the central banks must be tapping into thieir $US reserves. ECB/BOJ/UK/Canada/ et el can't just print $US dollars. 690060[/snapback] I think the Feed is feeding them, for sometime now (since March?). There was a news bit about it. Link to comment Share on other sites More sharing options...
aussiebear Posted September 18, 2008 Author Report Share Posted September 18, 2008 As many have said in here before, it probably won't matter how many squillions they pump into the financial system...look what's happening with Russia: Russian banks are facing a tightening squeeze on liquidity -- accelerated by a breakdown in confidence between lenders. "Everybody's sitting on a lot of cash, but nobody wants to lend it to anybody else," said Hawk Sunshine, head of investment banking at Metropol investment bank. The Kremlin has struggled to restore confidence in the banking system with a wave of emergency loans, fearing a repeat of the 1998 economic crisis, which saw the ruble devalued, default on the country's sovereign debt and widespread bank foreclosures. Russia's situation is markedly different now -- the government has huge cash reserves and virtually no debt. Russian markets closed until Friday Link to comment Share on other sites More sharing options...
astral mike Posted September 18, 2008 Report Share Posted September 18, 2008 I think the Feed is feeding them, for sometime now (since March?). There was a news bit about it. 690061[/snapback] hmmm, has this ever been done before in US$? seems like the cashier at the FED can't handle all the customers, and has had to open several more outlets to meet the demand! Link to comment Share on other sites More sharing options...
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