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Banks inter lending Freezes, not lending to each other again!


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Heads up folk's,

You people on this forum helped me so much back in 2007-9 - payback......

This was the catalyst for 2007-8 market crash. It was UK banks before, but the Federal Fund rate (US) - just dropped off chart! Inter lending banking freezes.

DOOM ON! ....   lag was 6-9 month last time. Imminent this time!

Hopefully happy HPC. :]

 

Jump to 4:20

 

 

 

 

 

Edited by tuggybear
add youtube timing
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26 minutes ago, Si1 said:

Mark-Carney--009.jpg?w=700&q=55&auto=for

I have a feeling a little under the counter bail outing may be  going on already.

Just like the ERM farce in 1992, the Government puts in and the market sucks it back out. George Soros made a tidy bob or two out of that. This may explain why the markets are up and down like a whore's drawers.

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Given that the sharp fall happened at the beginning of January is it possible that some other boring factor was at play rather than a replay of summer 2017?

It may not be a coincidence that the Net Stable Funding Ratio came into effect on 1 January 2018, for example.

I know that interbank deposits have very little value now, largely as a result of regulatory design. They are expensive for the lender in terms of capital and the borrower can do very little with the money. Also, there are plenty of alternatives from your friendly central bank (although this a source that is drying up).

Yes, there is less interbank money around now and it is getting more expensive as rates finally normalise, but we may be reading too much into a graph unless it is supported by genuine market commentry rather than some crank preppers website.

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2 minutes ago, Lord D'arcy Pew said:

I have a feeling a little under the counter bail outing may be  going on already.

Just like the ERM farce in 1992, the Government puts in and the market sucks it back out. George Soros made a tidy bob or two out of that. This may explain why the markets are up and down like a whore's drawers.

How does this feeling manifest itself? Does your nose twitch or something? Or have you seen a video on a crank website and extrapolated all sorts from it? 

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21 minutes ago, Ah-so said:

How does this feeling manifest itself? Does your nose twitch or something? Or have you seen a video on a crank website and extrapolated all sorts from it? 

Well if deutsche bank are in trouble  EU rules now state that it can not be bailed out. The same goes for all the other too big to fail European banks. This may be why banks are not leading?

https://www.bloomberg.com/news/articles/2018-02-09/hna-cuts-deutsche-bank-stake-to-remain-significant-investor

 

Edited by Lord D'arcy Pew
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If interbank lending is freezing then you would expect to see Ted Spread and Libor-OIS spread to blow out. They haven't.

http://www.macrotrends.net/1447/ted-spread-historical-chart

Unfortunately you can't get a current Libor-OIS spread chart on web but the TED spread clearly shows there isn't a funding crisis as reflected in the spread between the credit risk of a bank and the credit risk of a US Treasury.

Edited by moneyscam
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6 minutes ago, moneyscam said:

If interbank lending is freezing then you would expect to see Ted Spread and Libor-OIS spread to blow out. They haven't.

http://www.macrotrends.net/1447/ted-spread-historical-chart

Unfortunately you can't get a current Libor-OIS spread chart on web but the TED spread clearly shows there isn't a funding crisis as reflected in the spread between the credit risk of a bank and the credit risk of a US Treasury.

Is interbank lending as important now? Since the crash the central banks have supplied money?

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5 minutes ago, Democorruptcy said:

Is interbank lending as important now? Since the crash the central banks have supplied money?

Sure, massive CB injections of liquidity have 'crowded out' supply of interbank lending needed but it still goes on. And we know that this liquidity is going to be withdrawn albeit gradually. So the point still stands, of the lending that is going on between banks there are no signs of any stress yet. That woman sounds a bit crackers to me.

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https://www.itmtrading.com/

Gold and silver selling company trying to make people fearful so they buy more gold and silver, surely not!

Ive watched various interviews like this over the years, the better ones are where its not all doom and gloom and they show the market going both up and down.  Still not nearly comparable to doing your own research and properly understanding whats going on IMO, i always take what people say with a pinch of salt.

Edited by Majorpain
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21 minutes ago, Majorpain said:

https://www.itmtrading.com/

Gold and silver selling company trying to make people fearful so they buy more gold and silver, surely not!

Ive watched various interviews like this over the years, the better ones are where its not all doom and gloom and they show the market going both up and down.  Still not nearly comparable to doing your own research and properly understanding whats going on IMO, i always take what people say with a pinch of salt.

Would it be better to have a hotdog company extolling the benefits of precious metals? Can I listen to the information then?

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8 minutes ago, Noallegiance said:

Would it be better to have a hotdog company extolling the benefits of precious metals? Can I listen to the information then?

Lol, my warning that people on the internet may not have your best interest at heart leads you to say that?  Lynette Zang may say some interesting things, but what is her track record over the years and why is she not a billionaire (see Ray Dalio)  because of it?  Would you give her all your money to invest?

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4 hours ago, moneyscam said:

Sure, massive CB injections of liquidity have 'crowded out' supply of interbank lending needed but it still goes on. And we know that this liquidity is going to be withdrawn albeit gradually. So the point still stands, of the lending that is going on between banks there are no signs of any stress yet. That woman sounds a bit crackers to me.

OK thanks.

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  • 440 Brexit, House prices and Summer 2020

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      • down 5% +
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