Thursday, Sep 18, 2008
...How about another $180,000,000,000 to keep you all ticking over for a few more days?
Bloomberg: Fed, ECB, BOJ Take Joint Action to Alleviate Tensions
The Federal Reserve, the European Central Bank and the Bank of Japan joined with their counterparts around the world to pump dollars into the financial system and head off a deepening crisis.
The Fed said it authorized other central banks to auction $180 billion in dollar funds to financial institutions, in a statement on its Website. A joint release said that the Bank of England, the Bank of Canada and the Swiss National Bank also participated.
``The action is designed to address the continued elevated pressures in U.S. dollar short-term funding markets,'' the banks said. ``The central banks continue to work together closely and will take appropriate steps to address the ongoing pressures.''
Posted by tyrellcorporation @ 09:40 AM (761 views) Add Comment
19 Comments
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1. sold 2 rent 1 said...
WOW - what a "fifth night" destruction we are all having here.
Dr Calleman must be pleased as punch.
I see gold has leapt $80 and silver $2 from yesterdays lows.
This is a massive buying opportunity that will see these darlings peak in spring 2010 (18 months)
Remember how oil went from $50 to $147 in 18 months
This is Elliott wave 3 (from 2003) for silver and we could see $50 (up from $10) in 18 months. Gold could double or triple in the same timeframe too.
2. harold said...
It is very interesting that the CBs have come out and said this publicly - usually this sort of action is done quietly. They are hoping, of course, that this tough talk will help - which it might, temporarily (FTSE is up this morning). But in reality, everyone knows that the system is completely broken - it's over. Crash, depression, and hyperinflation here we come. People still haven’t woken up to just how bad things are going to get in the UK.
3. Gothin said...
What is the best way to invest in gold? Paper gold doesn't seem much cop and physically holding it is difficult for most people?
4. timmy t said...
I just don't get it. This is obviously why I don't work in the city. If all this chaos was caused by money being too readily available, how can pumping more money into the system be a solution. If they suddenly realised that excess debt was the problem and decided to gradually reduce availability to enable a 'soft-landing' then I could understand. But the amounts are getting bigger and bigger. Like I said the other day, its like giving heroin to an addict to prevent cold-turkey. Looks to me like like the shakes and sweats are getting worse so the Central Banks are just finding bigger needles with which to inject. Most addicts either get clean or eventually overdose and die - looks like we're heading for the latter at the moment. Am I missing something?
5. This comment has been removed as it was found to be in breach of our Blog Policies.
6. malct said...
To understand what this scheme is, and how it works, you have to step back and view it from the larger perspective of a bankrupt financial system: The devil is in the intent, not the details. As LaRouche has repeatedly declared, the global financial system died in the Summer of 2007; it has not come back, and will not come back. It is dead. The problem facing the banks, is that they still have trillions of dollars of bad paper on their books, paper whose real value ranges from zero, to pennies on the dollar. They can't afford to write it off, and they can't sell it. Despite their financial reports, they are bankrupt, and the bigger they are, the more bankrupt they are.
John Hoefle – Executive Intelligence Review
7. malct said...
The bailout of AIG has exposed more than just the collapse of Casino Capitalism. It exposes the governmental system to be as much a sham as our economy has been! How is it that $85 billion can just materialize to bail out this one insurance company (insuring for the most part, opaque, enormously complicated and risky investments) without so much as a session of Congress? Where is the appropriations committee in this matter? Where were they when the Bear, Stearns/JP Morgan deal went down on a Sunday?
Michael Fox - The Smirking Chimp
8. malct said...
Plunge Protection Team
For the past year, we have been warning that Paulson, Fed chairman Ben Bernanke, and the Plunge Protection Team were engaged in a systematic bailout of the bankrupt U.S. financial system, and, in doing so, were bailing out the global Anglo-Dutch Liberal system. Despite all the spin about "protecting homeowners," this is a plan to save the parasites by transferring their losses to the taxpayers.
No one knows what this will ultimately cost, because the financial system is still hemorrhaging as the effects of the death of the system work their way through the balance sheets of the commercial and investment banks, hedge funds, pension funds, money-market funds, insurance companies, and other speculators in the quadrillion-dollar-plus global financial casino
mf eir
9. d'oh said...
I've always found the notion of auctioning money a bit perverse...
Sort of reminds me of a joke I read as a child in the 70s...shares fell 40pts yesterday as the Bank of New South Wales announced a closing down sale. As a kid the notion of a bank having a closing down sale seemed perverse. Ah, the folly of youth.
There's a lot of truth in humour.
10. malct said...
If the past 10 months of the Depression are any indication, it will probably keep the market level for another week or so, as each such move seems to do, then another shoe will drop. It's reckless, and we're watching the whole system collapse – financial, governmental, and even judicial, as there appears to be not even any judge to step in and stop this corruption - nay, this utter perversion of our economic and legislative systems.
mf tsc
11. plato said...
Modern Politics and Economics : A surefire blend for chaos. Nothing independent happening here. No real Free Market. Manipulation at it's most destructive is in practice. Much more of this and large economies will start to look after number one, sounding the Death Knell for 'false' economies. Housing will be cheap,but the living standards most are used to and take for granted will be unaffordable.
12. malct said...
Again: Pull back and look at the system as a whole. During the heyday of the bubble, the debt machine was taking in mortgages, credit-card receivables, corporate debt, and related items, and spitting out even larger amounts of securities on the back end. In 2005, for example, this securitization game took in $1 trillion in new mortgages, and turned it into $3 trillion in mortgage-related securities.
This game of turning piles of debt into even larger piles of assets spun off huge amounts of cash, and as the pyramid scheme grew, the banking system grew with it. Then, suddenly, the music stopped, and Wall Street, the City of London, and other major financial centers found themselves with far more capacity than business, far too much expense for the suddenly reduced income.
Suddenly these over-leveraged behemoths were struggling just to survive, their assets vaporizing, and no way to make the money they needed to cover the bills.
Regardless of what the bankers try to do, the system must inevitably shrink until it finds equilibrium, and that is a long way down. The best they can do, from their standpoint, is to try to protect the system itself, saving as much of the core as they can.
That means lots of bank failures, and lots of mergers, many of them with government assistance. The big banks will try to survive by gobbling up the little ones, aided by Federal life support.
The government has already shown it will do as much as it can to protect the money and the parasites, while throwing the taxpayers, and the rest of the economy, to the wolves
jh eir - jh also @10:52 not mf as stated.
13. layers said...
Wouldn't $180bn pay for everyone's mortgage? Imagine if everyone had a house given to them by the state like this - disposable income would then go through the roof, banks wouldn't be out of business, and the consumer would power the economy. Amazing how they can find this cash when they want to.
14. timmy t said...
I haven't got a clue what's going to happen. All I know is:
1. It won't involve multi-dimensional travel
2. I am getting absolutely f**k all work done this week
15. hash browne said...
What the hell is goin on!! It makes me sick to the stomach how people are dying all over the world for the sake of a few £s on medical supplies yet the UK & US can hand out billions to help these fat greedy bast*rds. How has the world become so blind? For christ sake, Kevin Keegan leaves NUFC and all hell breaks loose.... tax payers bail out bank bosses who in return give themselves billions in bonuses... and no-one bats an eyelid! We're all too damn soft!!
16. rotten tomato said...
@malct
I see you are a reader of Larouche's writings. Well that makes two of us. I find his take on things extremely interesting, and very refreshing when compared to the constant negativity coming from other sources, and their "solutions" to the issues facing modern society. I am referring to the greens and the children of the 68 movement which are in positions of power today. They are quite literally a bnch of humanity haters, and the application of their so-called philosophies (sustainable power consumption, and other green stuff) are a total farce, and will lead to genocide and de-population.
But as an aside, I have been thinking, what would happen if instead of bailing out the fraudulent parasited the various central banks had used that money in a central fund to sponsor the building and upgrade of vital world infrastructure instead? For example, massive desert reclaiming projects for farming in the north African Mediterranean belt? Or an emergency speed up of construction of the nuclear fusion reactor at Cadarache in France (www.iter.org)? Or the upgrade of river levees and canals and the modernization of water transport ways in the US (long underfunded), thus avoiding the massive floods which we see every so often on the telly? Finally the upgrading of rail communications beteen Europe and Russia, all the way to China, for the faster transport of goods! How much more beneficial would that money be spent there, how many jobs would it create! How much new wealth it would generate, wealth which is directly linked to real physical production and improvement of the people's lives. But no, the billions must be spent on saving the thieves' friends in the banking and government institutions. It is a sham, and it is leading to a new feudal age of slavery.
17. planning4acrash said...
Hash Brown. First sensible thing said today.
Rotten Tomato: Best way to have all the things you said is to end the money printing system and let free markets work. Sure, you could print all the money you want for desert reclaiming or for fusion, but, the remainder of the productive economy will suffer. Why for example have the EU pay billions to subsidise farmers to leave fields all over Europe Fallow, and then go to lengths to reclaim desert? Much better to let the free market work and have the areas productive for agriculture produce. Then we would have dirt cheap food in the UK and could export to Africa. Best way to let the deserts come back is to emancipate the nomadic Toureg's etc, who know how to till and enrich those lands. Unfortunately, EU and world bank policies, etc. try to get these people off the land and, combined with corrupt government forces, you see them being taken from their land at the barrel of a gun. Well, the Toureg's know how to shoot too and have held at least some of their ground.
18. planning4acrash said...
Bottom line is, Rotton Tomato, you are asking to gain ownership of a fiat pyramid system that you never owned. The only thing you can ever own is liberty and freedom. We gave that away long ago. Read Ron Paul, A Revolution, to get into liberty, and visit www.campaignforliberty.com
19. rotten tomato said...
@p4c
Well, p4c, you do make valid points, I have to admit. But there are some fields of physical economy which do require long term intensive capital investment at low interest rates, say 1 to 2%. Infrastructure projects and long term technological development are some of those. As an example, if we did not have a massive long term government sponsored investment, in the Manhattan Project, we would not have nuclear fission today. There would have been no way that private enterprises would have invested that kind of money, when private enterprise notoriously demands extremely short term results. The PPP concerns highlighted these days by NY mayor Bloomberg and Schwartznegger are scams to steal state infrastructure for example, from the people, and exact a tax for its use. It is parasitic in nature and if implemented will decree an even faster rate of its mechanical collapse due to the inevitable underfunding the private entities will dedicate to maintenance. As an example of this I cite the UK rail system I saw when I was living there in the year 2000. I hope things have changed now. Of course I am not a socialist, I agree with your general sentiment, but I would only reccommend it on the small scale of the local comunity.