Still no deflation: Disinflation then lots of inflation
As we explained years ago, the Fed has a bottomless bag of tricks to use to fight deflation. When deflation inevitably threatens, the Fed planned to continuously change the rules of the game to fight it, and so they have.
You did not need enormous powers of foresight to make this call. All you needed was a browser and an Adobe Acrobat reader on your PC and a strong stomach to read the Fed's deflation play book (pdf) published by the Fed in 2003.
It was not the only such publication that the Fed issued to try to jawbone inflation expectations up back then, before explicitly carrying out the policy ideas the play book lays out. All of the several dozen papers issued either by the Fed or by the man who now heads it, Ben Bernanke – some as many as 25 years previous – have a common theme: do not, under any circumstances, allow your economy to fall into a liquidity trap. Avoid the zero bound of inflation and interest rates as if the nation's economic life depended on it, because it does. (I'm going to guess that the risk of a repeat of the 1930s has haunted Bernanke since childhood, perhaps because of stories he heard from relatives growing up, thus his focus on the topic in his professional life, not to mention the quivering voice during the hearings two weeks ago when he and Paulson were begging for the bailout.)
Printing money is front and center in all of the anti-deflation policy recommendations in these policy papers issued in accordance with economic policy group-think that is soon to be relegated to the ash heap of history; the economic orthodoxy of any era is a reflection of the political interests of those in charge.
And here we are, facing down deflation and printing money like there's no tomorrow, because if the Fed does not – or so the Fed believes – there won't be.
Print, Ben, print!
Banks borrowed $368 billion per day last week, up from $188 billion per day the week before.
full story: http://www.itulip.com/forums/showth...52281#post52281
Philip Manduca on CNBC: "I spoke with Goldman Sachs people - they are pleasantly amused :gomad - because life will be much easier for them after this messy time is over, because they are going to survive."
....ob sie wieder ungesraft davonkommen :confused:rolleyes
siehe---> An E-Mail to a Member of the Research Team at Goldman Sachs
ich kann gar nicht so viel essen wie ich :bad möchte :mad
Debt clock can't keep up 2:48
CNN's Don Lemon visits the National Debt Clock, which has run out of spaces to display $10 trillion in red ink.
Russian stock markets suspended
32 minutes ago
By CATRINA STEWART
Associated Press Writer (AP:MOSCOW) Trading on both of Russia's stock exchanges was suspended Monday after shares fell more than 15 percent on the back of falling oil prices and deepening fears about the global economy despite the passage of a $700 billion U.S. bank bailout.
Trading on MICEX _ where most trading takes place _ was shut down at 1:35 p.m. (0935GMT) for one hour after shares dropped by 15.4 percent to 781.8 points. The benchmark RTS _ where trading was halted at 2:05 p.m. (1005GMT) for an hour _ tumbled to its lowest point since August 2005, falling by 14.3 percent to drop below the 1,000-point mark at 917.8 points.
Russia's stock market in recent years has boomed amid high prices for oil and natural gas. But the market began falling sharply in midsummer amid concerns about government interference with businesses, and the drop accelerated as the global economic crisis intensified. Oil prices, the backbone of Russia's economy, have been sharply down in recent days _ dropping to $90 a barrel _ and investors have also been spooked by August's five-day war between Russia and Georgia......
...ein bisschen Börse auf CH-Art ;)
Im Fokus: ABB
Finanzwerte - Diese Woche findet laufend eine "Metzgete" statt - in allen Beizen (Finanzplätzen).
Vertrauensschwund - ist total! Wie lange trauen sich die Notenbanken noch? Europa hat keine gemeinsame Linie, Jeder für sich alleine!
Hedge Funds - die sind auf der Schlachtbank, das Ausbeinlen hat begonnen...
Privatbanken - werden jetzt auch geschmissen. Kurseinbrüche bringen weniger Kundenaufträge und vor allem geringere Kommissionen.
ABB - ist derzeit einer der Hauptleidtragenden durch Hedge-Fund-Verkäufe.
Swatch/Richemont - Ende des Wachstums der Luxuswelle angesagt?
Optionen - ein einziges Schlachtfeld. Etwas Uebersicht bei: UBXDO, UBXDEN; UBSPP (plus 55pc), UBSFF, SMUVY (plus 85pc), SMIU (plus 65pc), SMFIT (plus 63pc), SMZKF (plus 60pc).
The World’s Slowest Tennis Match
Posted by nin_man under all ur bankz , fail
Wells Fargo volleyed back to Citi in the pissing contest to win Wachovia, finding a friendly US District Judge to totally undermine NY Supreme Court Justice Ramos’ ruling that blocked WF’s (if Wells Fargo merged with TD Ameritrade, I could abbreviate their name WTF, which would make me smile) buyout of future failed bank Wachovia. In your face, Citigroup!
Citigroup is expected to find someone higher-ranking to reverse the reversal, and the process will continue back and forth up the ladder of power until the nation’s most powerful man, Dick Cheney, will shoot both Vikram Pandit and John Stumpf in the face. They will both apologize to him, and then he will buy Wachovia.
6 Oct 2008 Citi Sues Wachovia, Wells For Breaking Its Date
Posted by alyx under all ur bankz
Can you just see Vikram Pandit on the phone with Bob Steel? “I SO HAD US RESERVATIONS FOR DINNER. AT DORSIA. HOW DARE YOU NOT SHOW UP. I EVEN MADE YOU GUYS BUSINESS CARDS. ON THE LINEN VELLUM CARD STOCK!”
Citi’s demands from Wachovia and Wells Fargo for trying to run off and elope, also known as “tortious interference” by Wells Fargo in Citi/Wachovia’s relationship - a cool $60 billion. $20 billion is compensatory, $40 billion is punitive. As if either of them has $60 billion sitting around somewhere. If they did, this whole charade would be moot.
Full text of the litigation - in which Citi claims they saved Wachovia from failing the day after they made their bid, and thus they are entitled to $60 billion dollars, 30 virgins, etc - can be found here.
Posted by fabric
....master of finance :bad
...nicht zum glauben :dumm:dumm:dumm
Paulson picks interim head for rescue effort
Monday October 6, 1:54 pm ET
By Martin Crutsinger, AP Economics Writer
Paulson taps former Goldman Sachs executive to run $700 billion rescue program
WASHINGTON (AP) -- The administration has selected a former :bad Goldman Sachs :bad executive to be the interim head of its $700 billion rescue effort for financial institutions.Neel Kashkari, the Treasury's assistant secretary for international affairs, was selected Monday to be the interim head of Treasury's new Office of Financial Stability.
The designation was made by Treasury Secretary Henry Paulson, who was the head of Goldman Sachs before he joined the Bush administration in 2006. Kashkari, 35, will head the office created by the emergency legislation enacted Friday to fund the largest government bailout in history....
Global Meltdown Meets Earthquakes and Extinction News
October 6, 2008
Elaine Meinel Supkis
A series of bad earthquakes rattle the entire perimeter of where India is crashing into Asia. Also, many mammals will go extinct soon. This is the REAL news. Then there is the economic mess. Congress questions Fuld, a top gnome, about screaming for help and then handing out billions in goodies to himself and his buddies before declaring bankruptcy. And world stocks crash through various floors. What do we expect? The Fed is going to lend nearly a trillion more dollars in a failing attempt at reviving banking. Har. That is going extinct, too.
Kyrgyzstan, Tibet and other places hammered by earthquakes caused by India continuing to ram into Asia.
To put everything in perspective, it is good to remember the planet Earth, our home base and the true thing that is at stake here.
With no warning, a number of people minding their own business died this morning when a sharp series of medium-bad earthquakes rippled through the mountains being shoved so violently upwards by the Indian Plate. This plate used to be the fastest moving plate on earth but ramming into Asia has slowed it down, somewhat. But hasn't stopped it from shoving relentlessly northwards. Will India continue until it cuts Asia in two?
It is possible! This titanic force is like all forces of nature: relentless and follows its destiny and doesn't let much of anything interfere. When India split off from Antarctica, most likely after a meteorite strike of great violence there, it shot northwards and geologists still have no idea why it did this with such amazing force. When India passed over this 'hot spot', it released enough gases and lava, it changed the earth's climate and lead to a huge extinction event.
This earth is dynamic and powerful. The sun is also capricious and dynamic. We mere humans would like to think our houses, the wearing of animal skins, our technologies and our use of fire will isolate us from Nature's forces. But we can't even control forces that are TOTALLY within our own control! Yet we think we dominate this amazing planet.
Stocks are now being dragged into the economic cellar just as asset values, commodity prices, all our paper is rapidly losing value while totally made-up money is rising in value, paradoxically! Prices of things we need are still very inflated but will now join all the other things in falling. This flip from 'Inflation' to 'Depression' is not mysterious. This is what ALL systems do: they FLIP.
Over 30 dead in Tibet earthquake :(
18:57 | 06/ 10/ 2008
BEIJING, October 6 (RIA Novosti) - At least 30 people were killed in an earthquake which hit the Tibet Autonomous Region in China on Monday, the country's Xinhua news agency said, citing the local administration...
By DEBORAH SOLOMON
Politics & Campaign »
WASHINGTON -- Worsening market turmoil prompted U.S. financial regulators to outline steps they are using to boost the balance sheets of institutions reeling from the crisis.
The Treasury Department is under pressure to show meaningful results from its newfound authority to buy $700 billion of distressed assets, which Congress approved last week. Treasury is expected to begin buying assets within a few weeks through the use of auctions. But if market conditions continue to deteriorate, it could make use of another tool at its disposal: investing directly in troubled companies. (....da werden wohl nur die "Genehmen" profitieren :mad)
Treasury has the power to directly inject capital into a failing firm by taking a significant equity stake. In an unusual statement issued Monday, the President's Working Group on Financial Markets, noting that "conditions in the U.S. and global financial markets remain extremely strained," said Treasury could "directly strengthen the balance sheet of individual institutions."
Such a move, however, is likely only to occur if a firm is teetering on the brink of collapse and poses a systemic risk to the financial sector, according to people familiar with the matter.
The core of Treasury's plan is to conduct auctions as quickly as possible to buy bad loans and other distressed securities from financial institutions. Treasury is aiming to hire asset managers as early as this week and, as expected, Treasury Secretary Henry Paulson named Neel Kashkari as interim assistant secretary for financial stability, to head up the program within Treasury.....
full story: http://online.wsj.com/article/SB122...094210175.html?
3 peaks and “doomed” house
-> Posted by soee @ 1:38 am on October 7, 2008
After PM_Energy brought up the formation last night, I’m seeing that creepy pattern everywhere. The latest in the DOW weekly.
There was an inital h&s with a NL around 12K and a PO of 10K that has now been met today. Looking now for the countertrend bear market rally (point #27 in Lindsay’s formation) back up around 11.5K or 12. Then a final plunge in a few months to the bottom of the C wave down to around 6700. That is the roadmap. Now go track that bad boy down.
Drohender Kollaps: Island verhängt Notstand über Banken
Um einen drohenden Wirtschaftskollaps und Staatsbankrott zu verhindern, stellt der Inselstaat die gesamte Geldbranche per Notstandsgesetz unter staatliche Aufsicht. Die zweitgrösste Bank des Landes wurde am Dienstag als erste Bank vom Staat übernommen. Per Notgesetz hatte das Parlament die Regierung zuvor mit weitreichenden Rechten ausgestattet.
Finanzkrise: Island übernimmt totale Bankenkontrolle (Die Zeit)
Islands Fall gefährdet Europa (tagesanzeiger.ch)
Iceland prepares to rescue its banks (telegraph.co.uk)
Islands Notenbank zieht die Notbremse: Rekordhoher Leitzins soll den Zerfall des Kronen-Kurses stoppen (NZZ Online)
Bilder-Serie: Die Spekulanten sind los - Angriff auf Island (n-tv.de)
Russland leiht Island 4 Milliarden Euro (tagesanzeiger.ch)
Russland leiht Island 4 Milliarden Euro
Russland greift Island mit einem Kredit von vier Milliarden Euro unter die Arme.
Das Darlehen solle über vier Jahre laufen. Island leidte schwer unter der Finanzmarktkrise - vor allem die Banken sind betroffen. Die isländische Regierung übernahm am Dienstag die komplette Kontrolle über das Bankengewerbe, um eine drohende Staatspleite abwenden.
Russland spürt inzwischen zwar auch die Folgen der Finanzkrise, sitzt dank der hohen Ölpreise aber auf riesigen Devisenreserven. (oku/sda)
Erstellt: 07.10.2008, 11:32 Uhr
.....die Auswüchse der Krise :rolleyes in beide Richtungen :rolleyes
VW - da muss wohl jemand die Leerverkäufe eindecken :rolleyes
scheint vollbracht zu sein :rolleyes
Lehman's Fuld: Where was our bailout?
By Rachelle Younglai and Kim Dixon Mon Oct 6, 6:49 PM ET
WASHINGTON (Reuters) - Richard Fuld, the disgraced head of Lehman Brothers (LEHMQ.PK), said he would wonder "until they put me in the ground" why the U.S. government did not rescue the 158-year-old Wall Street firm and claimed regulators knew the full scale of its condition far before its collapse.
Fuld said he took full responsibility for his actions ahead of the downfall of Lehman, but said U.S. regulators were aware of everything at the firm and knew how it was pricing its distressed assets in the months prior to its bankruptcy......
.....Fuld said he did not know why the U.S. government chose to help other financial companies, but not Lehman as it hurtled toward disaster.....
....."Until the day they put me in the ground I will wonder," Fuld said in his first public comments since Lehman filed for bankruptcy protection. "I do not know why we were the only one" that was not rescued.
One day after Lehman filed for bankruptcy protection, U.S. authorities stepped in to rescue AIG with a plan to lend the insurer up to $85 billion. The panel will hear from former AIG executives on Tuesday.....
.....Five days later, Lehman filed for Chapter 11 bankruptcy protection, leaving three major investment banks. Since then, Merrill Lynch & Co (MER.N) agreed to be taken over by Bank of America Corp (BAC.N), and Goldman Sachs Group Inc (GS.N) and Morgan Stanley (MS.N) said they would become commercial banks.....
.....Fuld said that throughout 2008, the SEC and the Federal Reserve "actively conducted regular, and at times daily oversight of both our business and balance sheet."
"(Regulators) held regular price verification reviews. They were privy to everything as it was happening," Fuld said in testimony delivered to the House Oversight and Government Reform Committee....
Regulators "failed miserably" to prevent Lehman's collapse and its resulting impact on the U.S. economy, which forced Congress last week to approve a $700 billion bailout for the financial industry, Waxman said.
Lehman's collapse, the government's rescue of AIG, Fannie Mae and Freddie Mac, and frozen credit markets contributed to approval of the bailout......
......The Federal Reserve and Treasury Secretary Henry Paulson undertook a series of emergency measures to rescue mortgage finance companies Fannie Mae and Freddie Mac. U.S. authorities also orchestrated a deal to sell Bear Stearns to JPMorgan Chase & Co (JPM.N).
However, as Lehman's stock continued to plummet and the investment bank was unable to secure a buyer, Paulson was adamant that no government money be used to rescue Lehman.
"Had that decision been different, further dislocations in the markets might have been avoided," Fuld said.
Fuld blamed several events for Lehman's downfall, including abusive short selling, false rumors, credit agency downgrades and loss of confidence by clients and counterparties.
Over the summer, Fuld said Lehman discussed with the Fed the possibility of converting to a bank holding company, the structure Goldman Sachs and Morgan Stanley have adopted.
Fuld said the Fed acted too late to broaden the types of collateral that banks could pledge to create liquidity.
"Had these changes been made sooner, they would have been extraordinarily helpful to Lehman," Fuld said.
Law enforcement officials have said the FBI is investigating Lehman, Fannie, Freddie and AIG as part of a wider probe into potential corporate fraud.
(Writing by Patrick Fitzgibbons in New York)
(Reporting by Rachelle Younglai and Kim Dixon with additional reporting by John Crawley and Diane Bartz; Editing by Brian Moss, Dave Zimmerman)
....wem war Lehman wohl zu sehr im Weg :confused:rolleyes
Per Deadeye’s post of yesterday…
-> Posted by PMtrader @ 11:23 am on October 7, 2008
I just watched the video he linked (shown below) and it was worth the one hour.
Basically an overview of the corrupt nature of our monetary system, the video made a compelling case against the Federal Reserve. As you might suspect, I’ve seen and read a plethora of information on this subject, even having contributed a little in my novels Eye of the Pyramid & Power of the Scepter.
A few things struck me today when watching. First, more than ever, it seems undeniable that our current banking system has set this country, and likely the world, on a course of ruin. Second, and even more importantly, it invoked the contemplation: What can we do about it? It’s all too easy to conclude that the cancer has so intertwined itself with the body that death is a fait accompli - leading to an apathetic and/or fatalistic attitude, which then turns the mind towards other more pragmatic everyday contemplations.
Like many of you, I’ve seen the appearance of various freedom organizations, some over the edge, yet some right on point and spreading diligent educational and well-reasoned messages, perhaps best summarized by “Disband the Federal Reserve System”.
Slowly - and probably much too slowly - the message is creeping out over the bits and bytes which are the Internet. In my opinion, one of the problems in reaching a broad audience is that well-intentioned experts attempt to over-educate. A stark reality, the broader public has very little time to absorb information not specific to providing for family. So I ask myself, what is the essence of worth to the People in this message? Is it the compelling argument that the structure is inherently illegal? (appealing to the moral fortitude of the audience - probably and unfortunately thus doomed to failure). Is it that their purchasing power and their labor is being slowly stolen from them? (perhaps more compelling, but certainly not demanding immediate action - after all, the voting public is still surviving and still finding joy and sorrow in their lives… the Sunday football game, an occasional dinner out with the family, watching their children grow, etc.) So what is in the message that would appeal to the People and immediately garner their support? (Greed - or in the least, tangible and immediate benefit to them and their family.)
If anything in the prior introspection is of value towards formulating the message, then it would tend to imply a simple structure whose priority was benefits to the People - then subsidiarily, giving the moral and legal justification for action.
Disbanding the Federal Reserve will:So for the sake of argument, suppose that a message of this nature would satisfy the elements necessary for obtaining critical mass (spreading like a wild fire to every corner of the nation). What then? Politicians and members of the financial elite - who benefit from the corrupt monetary system - stand to lose their death grip on the People. Would they simply submit or would they fight it with every shred of their considerable worth and influence? Obviously a rhetorical question, new considerations arise: Now what? We have garnered the support of the people, so how can we implement the change?
As a nation, we have recently watched in the full light of day as the media machine was brought in to deceive the People - fear mongering: this bailout package is needed to avoid Depression, etc. As a nation, we have recently watched as our Senators and Representatives ignored a call from the People and passed a piece of legislation replete with abhorrent pandering to special interests, and replete with the granting of even more powers to those who caused this financial travesty and those whose sole purpose in life is to further enslave the People. But note, the initial Bill did not pass in the House - a bright light in this otherwise murky world. Thus implicitly, the question is fine-tuned and a course of action is suggested. The People must appeal at the local level to their Representative and Senator. If these Congressmen do not implement the will of the People, the People must must vote them out or if they are not due for reelection, they must take action to remove them from office (Note: What are the procedural issues here?).
I’m not sure if you’ve noticed, but words that were held dear at the founding of this nation have become purposely associated with radical groups (often unjustifiable so) in the minds of the People : truth, freedom, citizen, liberty, and the list goes on. Thus, these words must be avoided in naming a benevolent movement or organization that can garner the maximum support of the People. Contrarily, what is an accepted word, perhaps the most accepted word used by the political machine? Change. So ideologically, the benevolent organization must use the programming that has already been put in place by the power elite - in effect, using their own tactics against them.
Worldwide, change is being forced upon us. More than any other time I can remember, the People seem ready to become involved. We, as a nation and as a world, have an opportunity to break the shackles of financial corruption, and reestablish the great principles that founded these United States. The future will be only as bright as we make it - with our words, our involvement, and our commitment to “Change for the Better”.
Comments, flames, etc. are welcome. As in my novels, I had no specific ideas how this post would turn out when I started it. May all that is good and just shine needed light on the world.
Consistent with the message herein, if you were going to share something of these ideas with people, it might be “simply” the boxed text above.
07 October 2008
Wall Street's Shadow Market: "Criminal Neglect and Incompetence"
A twelve minute video segment in which Steve Kroft of 60 Minutes looks at some of the arcane Wall Street financial instruments that have magnified the economic crisis.
"Criminal neglect and incompetence" says Jim Grant.
"Just another wash and rinse with the Other People's Money crowd" says Jesse. "Being a sociopath means never having to say that you're sorry."
Video :supi ---> http://jessescrossroadscafe.blogspo...dow-market.html
Posted by Jesse at 12:08 PM
JNelson6563 (1000+ posts) Tue Oct-07-08 03:27 PM
Response to Original message 185. This is getting to be like Groundhog Day The Movie.
Sending out Chopper Ben and Little Boots doesn't seem to have done the trick. Wonder what tomorrow's strategy will be. They are runnin' out of tricks.
Finnfan (1000+ posts) Tue Oct-07-08 03:38 PM
Response to Reply #185 188. That's what I've been thinking. Nothing's working anymore. Nothing. The only question is whether the crashes are slightly less bad because of these stupid actions they're taking.
Makes me wonder where the bottom is.
...trotz hoher Vola :zz:zz:zz:zz:zz
AIG Spent $440,000 on Spa, Resort After U.S. Takeover
October 7, 2008 by admin
By Lorraine Woellert and Erik Holm, Bloomberg
American International Group Inc. spent $440,000 on a conference at a California resort less than a week after an $85 billion government takeover, lawmakers said.
The bill from the St. Regis resort in Monarch Beach included $23,380 for spa services, according to Representative Henry Waxman, chairman of the House Committee on Oversight and Government Reform. Waxman led questioning today of former AIG Chief Executive Officers Martin Sullivan and Robert Willumstad as Congress probes events that led to federal intervention.
“Average Americans are suffering economically,” Waxman, a California Democrat, said in his opening statement. “Yet less than one week after the taxpayers rescued AIG, company executives could be found wining and dining at one of the most exclusive resorts in the nation.”
The St. Regis, located on a bluff overlooking the Pacific Ocean midway between Los Angeles and San Diego, is “devoted to the pursuit of service and elegance,” according to its Web site. A “health and wellness” package costs $600 a night, with a two-night minimum.
The St. Regis expense “seems very inappropriate,” Willumstad told the committee. “I was totally unaware that there was any plan for any conference. Had I been aware of it I would have prevented it from happening.” Read more….
....es ist nicht zu fassen :gomad solche :kotz Kreaturen
October 7, 2008
rsjacksr (usagold.com 07October2008; 23:43)
A poem for all seasons. A must read.
Snippet:’Twas the death of the dollar and all through the night
The ill wind that blew filled wise men with fright.
My children stay put, there’s more to the tale
For what’s coming next is beyond the sad pale.
Our friends and our foes could no longer abide
The beggar-thy-neighbor currency slide.
Three horsemen were needed to mount the last ride,
An apocalypse wave came in with the tide.
Trillions of bucks we had sent overseas
Came back with a vengeance no matter our pleas.
“Full faith and credit” were words in the wind,
All lies and no truth was proof that we sinned.
At one time they needed more paper and ink,
Pretending that banknotes had less of a stink.
They no longer used cash and saved a few trees,
Just numbers in space created with ease.
A book entry is fine no matter the claim,
All’s fair in love and ledger-demain!
Tricks of accounting and deft sleight of hand
Repealed all the laws in Consequence Land!
Lagarde blames :bad Paulson :bad for Lehman (CNBC)
Britische Regierung will acht Großbanken teilverstaatlichen
Die britische Regierung kämpft mit einem eigenen Rettungspaket gegen die Finanzkrise. Sie schießt acht führenden Geldhäusern des Landes frisches Kapital zu - 50 Milliarden Pfund. Im Gegenzug übernimmt sie Aktien der Institute. mehr...
Join Date: Sep 2008
Originally Posted by mike77777
i like the way you think john doe. when would be a good low buy in level?
I don't have a crystal ball but, as it is going now, probably much lower.
There seems to be some technical reasons for the DOW to stabilize around 7,500 but this is just a guess. :rolleyes
Funny we had rate cuts when we didn't need them and that now the markets are going down the drain, even faster everyday, the Fed is not moving at all.
They (banksters) set up their pieces and now the master plan is just unfolding under our very eyes.
The plan is not terribly complex as just a simple mind could have come with it but in its relative simplicity lays all its raw power.
Historians looking at this in the future will say that only a terrible deficit in democracy and the total brainwashing of the masses can explain how it was permitted to happen.
07 October 2008
The Fed Signals Rate Cut; Remains In Close Contact with Treasury as Banking Crisis Deepens
The Fed is trying to use all the tools at their disposal to ensure the safety of the banking system.
A rate cut at this point does nothing in particular and is largely cosmetic given the special facilites and the new rate cut 'floor' from the payment of interest on reserves.
However, Ben is going to keep throwing junk at the market until it calms down. Or breaks down.
Bernanke Signals Fed May Cut Rates as Crisis Deepens
By Scott Lanman
Oct. 7 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke signaled policy makers are ready to lower interest rates as the credit freeze poses an escalating danger to the economy.
The world financial system is under ``extraordinary stress'' and history shows that severe instability ``can take a heavy toll on the broader economy if left unchecked,'' Bernanke said in a speech in Washington. ``The Federal Reserve will need to consider whether the current stance of policy remains appropriate.''
Today's remarks indicate the central bank's record loans to unblock credit markets are insufficient to prevent a deeper economic downturn. Investors increased bets the Fed will cut its main rate by as much as three-quarters of a point this month after stock indexes slumped to four-year lows and premiums on loans between banks climbed to a record.
``They are going to cut interest rates,'' said Mark Vitner, a senior economist at Wachovia Corp. in Charlotte, North Carolina. ``It does not make sense to wait.''
Stocks slid after Bernanke's remarks failed to assuage investors' concerns about deteriorating financial markets, with the Standard & Poor's 500 Stock Index losing 3.6 percent to 1,019.34 at 3:30 p.m. in New York.
Minutes of the Federal Open Market Committee's Sept. 16 meeting, released in Washington today, showed that some officials then saw a need for a rate cut should there be a ``significant worsening of the growth outlook...''
Posted by Jesse at 3:37 PM
....mir scheint eher Bernanke verliert seine Zähne :rolleyes und Paulson ist der "Metzger" :bad
Today, Wed, Oct 8, 2008
•^FCHIEurope shares touch 5-yr lows, banks hardest hitat Reuters (Wed 4:14am)
•^FTSEFTSE tumbles 6.8 pct as UK plan fails to lift banksat Reuters (Wed 4:08am)
•^FTSESterling wipes early gains vs euro in choppy tradeat Reuters (Wed 3:51am)
•^FCHIEurope shares plunge in early trade as banks slideat Reuters (Wed 3:26am)
•^GDAXIEuropean Factors--Shares set to track Wall Street plungeat Reuters (Wed 1:58am)
•^GDAXIBookies see Europe stocks sinking as Wall St plungesat Reuters (Wed 12:59am)
From The “Good Ideas” File
Posted by nin_man under bernanke
We are now one step away from just going to the Fed ourselves and demanding money. It makes me wonder if the discount window is literally a window, and if it is, does Bernanke man it himself, wearing a headset and asking if we’d like lies with that? From the WSJ:
The Federal Reserve said it will bypass ailing banks and lend directly to American corporations for the first time since the Great Depression, and it hinted strongly at further interest-rate cuts — a cocktail of unconventional and conventional remedies for an economy whose prognosis is deteriorating rapidly.Wow, it’s like we can’t rely on our banks anymore.
Posted by nin_man under bernanke
The Fed, the central banks of the UK, Canada, Switzerland, and that great banking powerhouse Sweden, as well as the ECB, got together for beers after last night’s presidential debate and drunkenly agreed to cut their respective benchmark rates by half a point. Then they slept together.
Posted by Doran at Voy Forum
Time Is Up Congress - And America
This is not good.
But the worst news is not in the stock market. It is in fact in some of the other indicators in the market which were indicating potential capital flight, along with still-extreme levels of stress.
I must caution everyone - if you are not prepared for six months to two years of unemployment, you need to be. If you are dependent on credit to survive (that is, if you couldn't make it without your credit cards) you need to fix that now......
......You are seeing the global credit markets unravel in front of your eyes, and it is happening precisely because the fraud, avarice and outright theft has gone unpunished and left in place to siphon off wealth from the average American for more than 20 years, and our President, in that environment, went on national television and threatened the world with a global Depression unless his Treasury Secretary got a $700 billion blank check.The markets, correctly perceiving there was a problem, did exactly what they did when this same gambit was run during the Fannie and Freddie debacle - they called the bluff.
The check is now on the table and we have but two choices - either pay it or suffer the consequences.
full story: http://market-ticker.denninger.net/
Paulsons Gestottere hat auch nicht eben viel gebracht :rolleyes immerhin der ^hui :supi
...ich scheine nicht alleine zu sein mit diesem Paulson :mad
-> Posted by ipso_facto @ 15:24 pm on October 8, 2008
A surfeit of Paulson. Paulson everywhere. Hank Paulson speaking every day….every day…..every day. Blah Blah Blah Blah Blech!
08 October 2008
Shhhhhh! Here is a Secret Worth Remembering.
The Treasury is going to devalue the US dollar by 30 to 40 percent, or more, from here.
Because they have no choice. Its what you must do when you cannot selectively default by creditor and you can't pay your debt service with additional debt.
The devaluation will be coated with a minty flavored shell of verbage and G7 misdirection and government programs with lots of letters in the names.
But isn't everyone else is in the same boat?
Actually they aren't. Take a look at the current account deficits and debt service payments growth. That will tell you who is in what boat.
Remember, its a secret. Don't tell the Chinese, foreign holders of US debt, and especially the US middle class whose life savings are going to be wiped out.
Isn't monetary deflation the natural outcome of a country's failure to maintain their credit and grow their debts?
Tell it to Iceland. Want to buy some krona?
But what about Japan? I think we are going to be in a deflation where our money is worth more as we print more of it, while producing less goods in return, and our financial paper is increasingly discredited and worth less.
Excellent. Someone has to hold the bag. Welcome to the team. Have a koolaid and a cookie and take a seat over there while you wait for further processing and creative destruction.
You may also be interviewed for an upcoming documentary to be titled "Cargo Cult Economics."
AIG hits up Fed for more money
Three weeks after an $85 billion bailout, AIG is turning to the New York Fed for additional funding.
....die brauchen wohl noch mehr Geld um ihre Luxus Aufenthalte zu finanzieren :kotz http://www.stock-channel.net/stock-...&postcount=1026
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