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lufc

Money-market Rates Rise, May Signal Return Of Credit Gridlock

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http://www.bloomberg.com/apps/news?pid=206...&refer=home

The three-month London interbank offered rate, or Libor, for euros advanced 1 basis point to 4.40 percent today, the highest since Jan. 18, the British Bankers' Association said. The rate for pounds rose half a basis point to 5.77 percent, the 12th straight daily increase and the highest since Jan. 7, according to the BBA.

Lots of rumour recently that the ECB would start to withdraw funding, maybe they have.

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http://www.bloomberg.com/apps/news?pid=206...&refer=home

The three-month London interbank offered rate, or Libor, for euros advanced 1 basis point to 4.40 percent today, the highest since Jan. 18, the British Bankers' Association said. The rate for pounds rose half a basis point to 5.77 percent, the 12th straight daily increase and the highest since Jan. 7, according to the BBA.

Lots of rumour recently that the ECB would start to withdraw funding, maybe they have.

I hope that the Libor rate keeps going up. Last time though the Central Banks injected huge amounts of money. There seems to be a question mark over whether they will this time though. Any one got any ideas or theories about this.?

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It used to be that LIBOR was a fairly good predictor of coming Central Bank rate changes. As the banks get wind of a forthcoming change the rates would creep up (or down) to meet the expected outcome [of the CB change].

That link has been broken since last August. We are getting lurches in LIBOR rates independently of any expected CB change in rates [creating those wild spreads] which are reflecting the real availability of credit and ordinary banks' trust in each other.

Boy, this is interesting again.

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It used to be that LIBOR was a fairly good predictor of coming Central Bank rate changes. As the banks get wind of a forthcoming change the rates would creep up (or down) to meet the expected outcome [of the CB change].

That link has been broken since last August. We are getting lurches in LIBOR rates independently of any expected CB change in rates [creating those wild spreads] which are reflecting the real availability of credit and ordinary banks' trust in each other.

Boy, this is interesting again.

IIRC, people on here were predicting end of Feb as being the next big turn of the screw.

Can't remember why, though.

Anyone care to refresh my aging memory? TIA

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IIRC, people on here were predicting end of Feb as being the next big turn of the screw.

Can't remember why, though.

Anyone care to refresh my aging memory? TIA

Because this is when the 3 month money rollsover. By all accounts the British banks with European operations have been taking advantage of the cheaper Euro to fund their own borrowing, but recent articles suggested that the ECB were going to start withdrawing that funding.

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Another reason from Monty's Gold Standard MBS Thread.

"The Bank of England is facing pressure to announce on Wednesday whether it will roll over its three-month £10bn loan to banks against a wide range of collateral that matures on March 19."

No way have British banks survived on £10bn over the last 6 months, wait until the ECB decides to stop playing ball.

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I found an old martini bottle full of half pence piece round the back of the sofa and overnighted it to the BOE. Heave a big sigh of relief people - the bank crisis is averted for a little while longer.

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I found an old martini bottle full of half pence piece round the back of the sofa and overnighted it to the BOE. Heave a big sigh of relief people - the bank crisis is averted for a little while longer.

Well done mate. You should of sent it to Northern Rock however, what with the way they do fractional reserve banking, the could underwrite ten house loans with that. :P

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Markets are up today. As soon as Ben finds out he will utter some words of doom and they will tank again.

Classic! The boy has justg released a Fed report saying that the US economy has slowed down. What is it with this guy - as soon as the Dow goes green he says or does something that turns it red!?

Wet knickers on the FTSE tomorrow morning.

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Classic! The boy has justg released a Fed report saying that the US economy has slowed down. What is it with this guy - as soon as the Dow goes green he says or does something that turns it red!?

Wet knickers on the FTSE tomorrow morning.

LOL

Masked Tuilip, I really do think that there is a job for you heading up the Welsh edition of Bloomberg.

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LOL

Masked Tuilip, I really do think that there is a job for you heading up the Welsh edition of Bloomberg.

I do not speak Gog but now that you have mentioned a Welsh edition of Bloomberg the Welsh Nats are already asking for 100 million per year of tax payers money to fund one and the 18 year old son and daughter of a leading Welsh Media Nationlist have been appointed to run it - even though they have no experience, can barely speak English but have a Mum and Dad who are leading Gogs!

QUANGOLAND - I live in Gog QUANGOLAND!

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I found an old martini bottle full of half pence piece round the back of the sofa and overnighted it to the BOE. Heave a big sigh of relief people - the bank crisis is averted for a little while longer.

High copper content in those little beauties.

You could be closer to the truth than you think :lol:

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I hope that the Libor rate keeps going up. Last time though the Central Banks injected huge amounts of money. There seems to be a question mark over whether they will this time though. Any one got any ideas or theories about this.?

Doesnt this simply mean that the cash injections have run out and havent worked ?

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  • 292 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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