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Reuters: Central Bankers Hold Talks Ahead Of Monday Market Open

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FRANKFURT (Reuters) - Central bankers in Europe held talks with bank supervisors and top financial executives over the weekend to assess the dangers from risky U.S. mortgage debt to the financial system, industry sources said.

Central bankers by late Friday had restored an uneasy calm to panicky financial markets by injecting a massive and unprecedented $323 billion (219 billion pounds) into money markets that had almost seized up in panic over exposure to complex credit derivatives linked to defaulting U.S. mortgages.

They appear to have succeeded in keeping cash flowing through the arteries of finance for now.

http://uk.reuters.com/article/businessNews...12?pageNumber=1

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What is gnawing at investors and traders is not knowing the size of overall credit losses linked to U.S. subprime mortgages that is buried in banks and funds -- and not knowing who holds the risk

Isn't it just so ironic, derivatives were supposed to make the system more stable by spreading risk. As it turns out they just spread fear and uncertainty when a crunch comes...

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Isn't it just so ironic, derivatives were supposed to make the system more stable by spreading risk. As it turns out they just spread fear and uncertainty when a crunch comes...

there is so much you can spread, it always comes down to basic law the longer you leave it the worse it gets.

Edited by crash2006

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I suppose it's like if I bake a batch of bread using half the flour thats past it's sell by date, the whole batch is contaminated even though most of the ingredients are O.K. . If I put that batch in with all the other bread it all looks fine and no-one notices . When someone gets sick from eating the bad loaves, everyone stops buying bread, and no one else can sell theirs.

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I think this is a pretty good assessment of the situation. I could not have put it in better words myself.

The best description I read of the zombie debt hidden in CDO bonds went something like this:

Imagine a layer cake that somebody is trying to sell you that looks fantastic and really tasty, with icing on the top and all. And just as you are about to hand over the moolah and take a bite, the baker says, "And, you know, there are only about ten spoonsful of human faeces in it, and they're mostly near the bottom, so you won't really taste it that much."

And I guess you might not, but the typhus will slow you down a little.

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When will all this end , it's not like anyone knows where all this toxic sludge is, or even if the main lot is disclosed, I mean some must be trying to either bury it or re-disguise it somehow.

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Isn't it just so ironic, derivatives were supposed to make the system more stable by spreading risk. As it turns out they just spread fear and uncertainty when a crunch comes...

The ability to "spread the risk" made them take more and more risk until the level of risk was unsustainable and it imploded on itself, producing the credit crunch, IMO.

These people are idiots. It's a crying shame that such absolute ignoramuses had such power. A second grader could have told you that this scheme made no sense and was going to end badly. I can't believe they made it happen.

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The ability to "spread the risk" made them take more and more risk until the level of risk was unsustainable and it imploded on itself, producing the credit crunch, IMO.

These people are idiots. It's a crying shame that such absolute ignoramuses had such power. A second grader could have told you that this scheme made no sense and was going to end badly. I can't believe they made it happen.

Greed and lust makes rational man abandon all sense.

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I think the problems have only started since they allowed women into mens clubs.

lol :lol:

Don't agree with that either, O/T i know, but as a woman I believe, men and women are equal but very different. I need space away from the men in my life every now and then. We can get on each others nerves. Prob why I've been happily married for 24yrs.

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