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Fed Announce Term Securities Facility

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FED announce term securities facility, to loan $200 billion to big banks - taking mbs in exchange.

BOE statement to follow

I knew it would happen. Have consistently suggested that the banks, all of 'em, are skint, insolvent, busted. The global (make that global not US) HPI miracle has been fuelled with about 10 trillion $ that does not exist.

Nationalisation of the world banking system. Sounds a bit Biblical doesn't it? 666 and all that............... :ph34r:

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Nothing like some seriously bad news to help stocks out though.

FTSE 100 (FSI:^FTSE)

Index Value: 5,727.00

Trade Time: 12:35PM

Change: 97.90 (1.74%)

Prev Close: 5,629.10

Open: 5,629.10

Day's Range: 5,629.10 - 5,728.40

52wk Range: 5,338.70 - 6,751.70

Or was it the soaring oil prices that sent stocks rising?

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But no matter how much we may like to brag about our foresight, the fact is that anyone with some common sense could have seen it coming.

All you had to do was connect the dots:

Dot #1. The credit crunch was threatening to hurt the U.S. economy. Everyone knew that; it was all over the news.

Dot #2. The threat to the U.S. economy was prompting the Fed to print money and trash the value of the U.S. dollar. That was also obvious; even hopelessly near-sighted Mr. Magoo could not have missed it. Plus ...

Dot #3. The falling value of the dollar would naturally help drive gold, oil and nearly all commodities through the roof. You didn't need 20-20 vision to see that either.

So are you surprised that the dollar is in a free-fall and commodities are exploding higher? You shouldn't be.

Nor should you be surprised if these same forces gather speed and momentum in the weeks ahead.

How do you know? Just connect the dots again ...

Dot #1. The Credit Crunch of 2007 has now turned into the Credit Collapse of 2008.

As I showed you a moment ago, the credit crisis is broader, deeper and hitting with greater speed.

It's not just a future threat to the U.S. economy. It's already shutting down credit markets, erasing tens of thousands of jobs per month, and driving hundreds of thousands out of the labor force entirely.

Dot #2. The Fed isn't just printing more money like it did last year. It has deployed entirely new kinds of money creation machines to flood the economy with dollars in far greater volume than ever before.

Dot #3. Commodities aren't just hopping along. They're flying into the stratosphere.

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Something must be afoot, look at the FTSE..

FTSE 100

(FTSE: ^FTSE)Index Value:5,780.70Trade Time:8:51AM ETChange:up_g.gif 151.60 (2.69%)Prev Close:5,629.10Open:5,629.10Day's Range:5629.10 - 5780.7052wk Range:5,338.70 - 6,754.10

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Well that's given the dollar a big kick up the a*se.

Euro put in a big spike reversal at 15500.

Let's see what the usual suspects do when the smoke clears, but for the moment all those longs are going to get burned pretty hard.

Edited by Red Kharma

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Mr. Credit bubble just got a massive dose of Grade AAA heroin and is slipping back into a euphoric state of calm and liquidity.

Never trust a junkie (just one fix). And each hit delivers a lower high, and a lower low...

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Never trust a junkie (just one fix). And each hit delivers a lower high, and a lower low...

Yep. And unless Helicopter Ben's got another syringe up his sleeve I'd be surprise if the high lasts the day.

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http://ftalphaville.ft.com/blog/2008/03/11...al-bank-action/

I love the comments from the FT alphaville regulars:

# Posted by bsb [report]

this is becoming a joke

1. perfect timing so the market can put in a "successful re-test" of the lows from last feb

2. huge buying this morning before the announcement - this was blatantly front-run by those in the know.

3. the TAF was supposed to fix this, that wasnt enough so now we have the TSLF, what if the TSLF is not enough

4. if the Fed is really taking non-agency RMBS as collateral that is the beginning of the end for the Fed. they are already highly leveraged.

# Mar 11 13:33Posted by hedgehog [report]

looks like Citi or Bears must be going under and this is pre emptive to try and prevent this or avoid complete market collapse on the news.

If not then recession wise they now know it's much worse than they thought

don't know about slap in the face - oxygen mask and life support seems more appropriate now

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Maybe the Fed's on a fishing expedition. Wait until there's some serious collatoral pledged in long commodities/ short USD positions and then blow the lot up with a policy reversal.

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This is just the beginning. By the time this is finished, the Federal Reserve will be the de facto owners of 10 trillion dollars of now worthless asset backed securities. They will, in effect, own everything that is worth owning - and that will be precious little - in the smoking and blasted remains of the world's last superpower. There is no crowned saviour waiting for them bow in hand, only financial death riding the pale horse of usery.

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  • 298 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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