Wednesday, December 19, 2007

350bn is not enough

Investors stunned by ECB’s €350bn

Why not 3 trillion and fix this problem once and for all? Hyperinflation is the only solution, the last thing we want is people living within their means! Weimar Republic here we come.

Posted by happyrenterz @ 10:15 AM (1591 views)
Please complete the required fields.



9 thoughts on “350bn is not enough

  • Short-term market interest rates in the eurozone plunged at their fastest rate for more than a decade on Tuesday after the ECB stunned investors by pumping a record €348.6bn ($502bn) worth of funds into the markets. The amount was twice as big as the ECB had indicated would have been needed in normal circumstances. The bank said some 390 private sector banks in the eurozone had requested funds, which have been offered for two weeks at 4.21%, well below the previous prevailing market rate. The emergency operation, which followed last week’s co-ordinated central bank action, prompted the two-week euro Libor to fall a record 54bp to 4.40%, while one-month and three-month rates saw their biggest falls for nearly six years. Separately, the Bank of England also sought to offset market tensions via the first of its long-term refinancing operations, auctioning £10bn in three-month funds at a minimum rate of 5.36% – 14bp below the 5.5% base rate. Three-month sterling Libor fell for a fourth successive session. (http://ftalphaville.ft.com/blog/2007/12/19/9742/investors-stunned-by-ecb%e2%80%99s-e350bn/)

    Reply
    Please complete the required fields.



  • Oh, those injections: Central bankers join doctors and junkies
    It’s a chief pastime of doctors, junkies and, increasingly, central bankers – and it’s rapidly becoming a word we love to hate. So while this point was made a few days ago by Long or Short Capital, the continuing preoccupation among the world’s central banks with – er, “infusing” – vast sums of money into markets make this cheeky point even more relevant.
    Why, asks Long or Short’s Mr Juggles, is liquidity only ever “injected”?
    Maybe this is the problem with financials today. Injections are harsh and can hurt – I know I close my eyes whenever the doctor calls for an injection.
    Maybe the Fed should try “pouring” some liquidity? My servants frequently pour hot water on my hair when I take my daily bath — it feels quite relaxing.
    There are so many options with liquidity, he notes. What about “stirring”, “folding”, or “squirting” liquidity into the markets?
    Ben… if something isn’t working, don’t just repeat yourself. Try a new method!
    Suggestions on alternative words most welcome.
    (http://ftalphaville.ft.com/blog/2007/12/19/9744/oh-those-injections-central-bankers-join-doctors-and-junkies/)

    Reply
    Please complete the required fields.



  • Well, it’s bucking the trend…but only for the short term.

    Reply
    Please complete the required fields.



  • The term ‘money-pit’ springs to my mind!

    Reply
    Please complete the required fields.



  • I don’t think this should be viewed as ‘hyper inflationary’ – it’s not a permanent add of liquidity, it has to be paid back Jan 4th I believe.

    Reply
    Please complete the required fields.



  • INJECT MORE MORPHINE!

    (it won’t cure the patient but it sure feelz gooood for a while … )

    Reply
    Please complete the required fields.



  • planning4acrash says:

    Well, looks like some kind of Bull market will be maintained for a few years yet. Till Dec 21, 2010, end of the Mayan calender anybody?!

    Reply
    Please complete the required fields.



  • I am sure I heard that about a third of this had been withdrawn today as the ECB was suprised by the demand foncethe funds were made available. If so then it suggests that the problem is even worse than the ECB thought and that they had their bluff well and truly called. ‘you can have as much as you want………as long as you don’t really want it!’

    Reply
    Please complete the required fields.



  • If you don’t have an FT login, try this link instead for the article:
    http://www.ft.com/cms/s/0/7ba8f586-ad5b-11dc-9386-0000779fd2ac.html

    The sheer amount of money beggars belief. €350bn dwarfs the BoE’s paltry £24bn rescue for Northern Rock; it dwarfs the Fed’s puny $20bn coordinated injection last week. Surely there must come a point where it has an effect in the real world?

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>