blogs.cfr.org - 10/13/2008
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Over the weekend, the countries of the G-7 indicated that they would do “whatever it takes” to prevent another Lehman-style bankruptcy. They pledged to “use all available tools to support systemically important financial institutions and prevent their failure. ”
Many ...
globaleconomicanalysis.blogspot.com - 10/8/2008
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globaleconomicanalysis.blogspot.com —
Bloomberg is reporting Trichet Can't Rule Out More
Cuts, Offers Cash Flood . European Central Bank President
Jean-Claude Trichet said he can't rule out further interest-rate cuts after joining a round of global reductions today and offering to flood ...
(more)
Trichet Offers Unlimited Cash
aleablog.com - 10/14/2008
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aleablog.com —
Nothing like “unlimited” dollar liquidity to send Libor
to a new high of 482 bp. OIS-Libor: 365
bp at record TED Spread: 464 bp new record Fed press release : In order to provide broad access to liquidity and funding to financial ...
(more)
“Unlimited” Dollar Liquidity
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Alea —
... ushers in the age of control
The insouciant bankers who got us into this mess do not much like such talk. Even as their glittering temples collapse around them, many are in denial. Only last week, one of Britain’s top bankers was protesting at the use of the word “part-nationalisation” to describe Mr Brown’s plan to take a government stake in enfeebled institutions.
What nationalization misses
An unlimited guarantee requires unlimited access to financing …
In Two Days, Morgan ...
Market melt-up
The Skeptical Speculator —
... Bank also said they would lend commercial banks as much U.S. dollar liquidity as they needed at fixed rates to restart interbank lending. In the United States, Treasury Secretary Henry Paulson said Washington was developing plans to buy equity in financial institutions to halt the prolonged market turmoil. All looking promising for markets. However, some are beginning to ask how all these programmes will be funded. As Brad Setser points out: An unlimited guarantee requires unlimited access to financing. And Willem Buiter asks: Are ...
Links 10/15/08
naked capitalism —
... tip reader Dwight) Regulation Cannot Depend on Irrational Markets Christian Weller, Credit Slips Bailouts, Nationalism and Diplomacy Roger Ehrenberg What the enemies of short selling overlooked John Dizard, Financial Times. How the short selling ban contributed to the slide in financial stocks (and for reasons I bet most of you never considered!) Goal: Increase Minority Homeowners by 5.5 Million in a Decade Barry Ritholtz An unlimited guarantee requires unlimited access to financing … Brad Setser Fossil ...
To infinity and beyond
self-evident —
... it is increasing its reciprocal swap lines from $620 billion to “whatever”.
Counterparties in these operations will be able to borrow any amount they wish against the appropriate collateral in each jurisdiction. Accordingly, sizes of the reciprocal currency arrangements (swap lines) between the Federal Reserve and the BoE, the ECB, and the SNB will be increased to accommodate whatever quantity of U.S. dollar funding is demanded.
Brad Setser has a good summary.
Any word, when over-used, loses its impact — but ...
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