Tuesday, December 11, 2007

Did central banks ever have control in the first place?

Losing Control Of Monetary Policy

"The Fed and BOE easing actions simply are not working to restore faith in the credit markets. Credit conditions based on LIBOR are worse now than in the August and November stock market swoons. Banks remain reluctant to lend to one another in spite of central bank efforts to provide liquidity. Neither central bank appears to be in control of anything at the moment. Of course it was only an illusion that made it seem like central bankers ever were in control in the first place."

Posted by sold 2 rent 1 @ 01:28 PM (545 views)
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4 thoughts on “Did central banks ever have control in the first place?

  • The problems in the banking system will not be solved by cheap money on its own because claims of rude health by banks are not believed…. by other banks!!!

    Goldman Sachs argued last week that the audited December results will stop fears of further massive provisions. This looks astonishingly complacent. Banks will need to make further charges as asset values fall. Japan’s bubble took a decade to unravel.

    The US and UK are going through a repeat of the Asian debt crisis of 1998, though this time the Asians are the creditors. And it seems to be these Asian creditors who are meant to suffer the loss in President Bush’s proposed rate freeze plan for sub-prime mortgages.

    If so, what foreign lender will dream of lending into the US mortgage market?

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  • rocket robbie says:

    s2r1

    Sorry to go on about the gold situation but is now the right time to buy or do you think its wise to wait a while

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  • Yep it looks like the Conservatives are calling for a rate freeze in the UK also, but as you point out Sid Public, who will want to lend money in the UK if the government could at any time tear up the loan agreement you have with your client just to avoid any political nastiness.

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  • sold 2 rent 1 says:

    rocket,

    Gold may correct further in the next month or so
    Long term it is going sky high.

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