Friday, December 2, 2011
EU can kicking
By David Milliken and Marc Jones
LONDON/FRANKFURT — Britain masterminded this week’s central bank effort to avert a liquidity crunch, its central bank chief said on Thursday, laying claim to the genesis of a plan that began to take shape around 10 days ago and was ready by the weekend.
Bank of England governor Mervyn King said he instigated the move by the central banks of the United States, euro zone, Japan, Canada, Britain and Switzerland to provide cheaper dollar funding for starved European banks, which provided a longed-for fillip to market sentiment.
“It was the result of conversations which I initiated as chairman of what used to be known as the G10 governors, now the economic consultative committee, among a limited number of central banks,” he told a news conference in London.
“But let me stress, this cannot be a solution to the underlying crisis, all this can do, is to help temporarily relieve liquidity problems. But liquidity problems, often, reflect underlying solvency problems and in this case they do.”........read on
Just a day before the next Lehman-style collapse?
The last time the Fed organized a global financial market reflation using dollar swaps on the scale it did this week was on September 20th 2008 just two days before the final collapse of Lehman Brothers when its Chapter 11 bankruptcy fell apart.
There is therefore a sense of deja-vu all over again about the Fed’s coordinated bailout of the eurozone on Wednesday. We just wonder who will go under on Friday?
Big fish
Market speculation yesterday was that the action came because a French bank was about to become insolvent. Yet we did not get this sort of move before Dexia or MF Global collapsed recently so the guessing must be that this is something bigger. Is this Greece about to finally default?.....read on
Keiser Report: Überdebten
By RussiaToday
on Dec 1, 2011
This week Max Keiser and co-host, Stacy Herbert, discuss Überdebten, financial eugenics and secret Fed loans. In the second half of the show, Max talks to Karl Denninger about MF Global, pepper spraying banksters and Occupy Wall Street.
This week Max Keiser and co-host, Stacy Herbert, discuss Überdebten, financial eugenics and secret Fed loans. In the second half of the show, Max talks to Karl Denninger about MF Global, pepper spraying banksters and Occupy Wall Street.
Thursday, December 1, 2011
European Debt Crisis
Dec. 1 (Bloomberg) -- Mauro Guillen, a professor at the Wharton School
of the University of Pennsylvania, talks about the European debt crisis.
Six central banks led by the Federal Reserve made it cheaper for
banks to borrow dollars in emergencies in a global effort to ease
Europe’s sovereign-debt crisis.
Jim Rogers on Bloomberg
Nov. 29 (Bloomberg) -- Jim Rogers, chairman of Rogers Holdings, talks about his investment strategy.
Rogers also discusses Europe's sovereign debt crisis, Federal Reserve monetary policy and the U.S. economy.
Loud sucking sound heard above Europe
From The Daily Mail:
Britain has been sucked into a second credit crunch that threatens the stability of the world’s banking system, Downing Street warned last night.
Central banks from around the world – including the Bank of England and China’s equivalent – yesterday launched a dramatic rescue bid worth hundreds of billions of dollars.
It was agreed to head off a repeat of the 2008 crash when banks simply stopped lending to each other, bringing the world economy to a halt.
The operation, led by the U.S. Federal Reserve, came amid fears that at least one major European bank may be teetering on the brink of collapse and that the eurozone countries could not be trusted to act swiftly enough to solve their problems.
Bank of England sources said last night the money being made available to struggling banks under the new facility was ‘unlimited’. But a similar scheme during the last credit crunch peaked at $583billion (£365billion) in late 2008.
Stock markets around the world rallied in response to the ‘pre-emptive strike’, with the FTSE 100 index closing up more than three per cent.
However, the credit ratings agency Standard & Poor’s downgraded its ratings on 15 global banks – including Barclays and HSBC – by one notch yesterday.
Read more: http://www.dailymail.co.uk/news/article-2068138/Britain-joins-multi-billion-pound-global-bailout-key-banks-face-new-credit-crunch.html#ixzz1fFwzxfgl
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