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Federal Reserve and other central banks announce unlimited liquidity
Calculated Risk — From the Fed: Federal Reserve and other central banks announce further measures to provide broad access to liquidity and funding to financial institutions In order to provide broad access to liquidity and funding to financial institutions, the Bank of England (BoE), the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank (SNB) are jointly announcing further measures to improve liquidity in short-term U.S. dollar funding markets. The BoE, ECB, and SNB will conduct tenders of U.S. dollar funding at 7-day, 28-day, and 84-day maturities ...

Fed Announces Unlimited Borrowing
Mish's Global Economic Trend Analysis — This morning the Fed issued a Press Release On Unlimited Borrowing. In order to provide broad access to liquidity and funding to financial institutions, the Bank of England (BoE), the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank (SNB) are jointly announcing further measures to improve liquidity in short-term U.S. dollar funding markets. The BoE, ECB, and SNB will conduct tenders of U.S. dollar funding at 7-day, 28-day, and 84-day maturities at fixed interest rates for full allotment. Funds ...

ALERT - Central Banks Go Insane, Offer Unlimited $ Refinancing
The Prudent Investor — If it were possible to pinpoint the beginning of hyper inflation in the Western world, this Monday September 13 stands good chances to become a historical milestone in hindsight. Investors woke up to a joint announcement of the major central banks that said that the Fed, the ECB, the BoE and the SNB would provide unlimited $ refinancing. The BoE, ECB, and SNB will conduct tenders of U.S. dollar funding at 7-day, 28-day, and 84-day maturities at fixed interest rates for full allotment. Funds will be provided at a fixed interest ...

Fed, ECB lead effort to increase dollar supply in global markets
BloggingStocks — Filed under: International markets, Forecasts, Federal Reserve, Financial CrisisThe U.S. Federal Reserve is leading an unprecedented effort by major central banks to push dollars into the global financial system, the Fed announced Monday, backstopping government fiscal policies to restore confidence, The European Central Bank, Bank of England, and the Swiss Central Bank, will offer unlimited dollar fund auctions with maturities of seven days, 28 days, and 84 days at a fixed interest rate. The Bank of Japan may offer similar measures, the Fed said. The Fed added that "central banks will continue to ...

“Unlimited” Dollar Liquidity
Alea — 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 institutions, the Bank of England (BoE), the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank (SNB) are jointly announcing further measures to improve liquidity in short-term U.S. dollar funding markets. ...

Short-term interest rates dip on U.S., Europe liquidity actions, bank rescues
BloggingStocks — Filed under: International markets, Federal Reserve, Financial CrisisThus far, credit conditions remain a cold as Rutland, Vermont on a January night, but there are hints of a thaw in the making. Interest rates for three-month loans in dollars dipped Monday, after policy makers in the United States and Europe offered unlimited dollar funds and Europe governments took actions to recapitalize and bolster banks. The London three-month rate decreased 7 basis points to 4.75%, Bloomberg News reported Monday. Also, the euro interbank offered rate, or Euribor, for one-week loans dropped 26 basis points to ...

Wall Street Breakfast: Must-Know News
SeekingAlpha.com: Home Page — ... The Bank of England, European Central Bank and the Swiss National Bank will offer unlimited dollar funds to help create liquidity in frozen short-term money markets (Fed statement). The central banks will conduct auctions of dollar funds in 7-, 28- and 84-day maturities at fixed interest rates. To facilitate the massive injection, the U.S. Fed said it would increase the size of its swap lines with the BoE, ECB and SNB "to accommodate whatever quantity of U.S. dollar funding is demanded." Commercial banks will be able to borrow any amount they want against 'appropriate ...

The Face Of Reality
MaxedOutMama — ... similar problems.US exchanges are closed today, but the European exchanges have so far stabilized a bit. The UK is buying into some of their largest banks to support them, and the Bank of England and the European Central Bank are going to offer banks unlimited funding in dollars. This is genuine global crisis, with the shortage of dollars playing the part that the shortage of gold did in the run-up to the Great Depression. Fed Statement: In order to provide broad access to liquidity ...

Monday Morning Potpourri
Across the Curve — ... Central banks in another coordinated effort have agreed to provide unlimited amounts of dollars (against the appropriate collateral) to the markets. This is via the Swiss National Bank, the Bank of England and the ECB. Thank you to reader Milton Arbogast who mentioned that in a comment on a previous post. ...

Return of Weimar Monetary Policies?
SeekingAlpha.com: Home Page — If it were possible to pinpoint the beginning of hyper-inflation in the Western world, this Monday September 13 stands a good chance of becoming a historical milestone in hindsight. Investors woke up to a joint announcement of the major central banks that said that the Fed, the ECB, the BoE and the SNB would provide unlimited U.S. dollar refinancing.

Monday Outlook: Central Banks Step Up
SeekingAlpha.com: Home Page — ... Central banks in another coordinated effort have agreed to provide unlimited amounts of dollars (against the appropriate collateral) to the markets. This is via the Swiss National Bank, the Bank of England and the ECB. (Thank you to reader Milton Arbogast who mentioned that in a comment on a previous post.) ...

Monday Outlook: European Central Banks Step Up
SeekingAlpha.com: Home Page — ... Central banks in another coordinated effort have agreed to provide unlimited amounts of dollars (against the appropriate collateral) to the markets. This is via the Swiss National Bank, the Bank of England and the ECB. (Thank you to reader Milton Arbogast who mentioned that in a comment on a previous post.) ...

Soros sees ray of light in bank recapitalization plan
BloggingStocks — Filed under: International markets, Forecasts, Financial CrisisOne of the world's leading investors is expressing cautious optimism - - underscoring cautious - - regarding the fate of the global financial system. Billionaire investor George Soros said Monday a pledge by European leaders to guarantee new bank financing is "a positive step" may help stabilize global financial markets, Bloomberg News reported. Soros: We're finally getting the leadership we need "In the last 72 hours, I think the European governments got religion and realized that this is a serious problem,'' Soros said ...

Bank Recapitalization Monday
The Baseline Scenario — ... in Morgan Stanley, gaining a 10% dividend on its shares (similar to Buffett’s investment in Goldman). This deal, which had been pending for weeks and some had given up for dead, will help boost confidence in Morgan Stanley. Note that unidentified sources have claimed that the US government promised to protect Mitsubishi’s investment; it’s not clear if that’s part of the final deal. The Federal Reserve and several of its counterparts announced an expansion in the supply of credit to banks around the world in US dollars. The Fed said it will make available as many dollars as ...

Fed, ECB lead effort to increase dollar supply in global markets
BloggingStocks — Filed under: International markets, Forecasts, Federal Reserve, Financial CrisisThe U.S. Federal Reserve is leading an unprecedented effort by major central banks to push dollars into the global financial system, the Fed announced Monday, backstopping government fiscal policies to restore confidence, The European Central Bank, Bank of England, and the Swiss Central Bank, will offer unlimited dollar fund auctions with maturities of seven days, 28 days, and 84 days at a fixed interest rate. The Bank of Japan may offer similar measures, the Fed said. The Fed added that "central banks will continue to ...

Short-term interest rates dip on U.S., Europe liquidity actions, bank rescues
BloggingStocks — Filed under: International markets, Federal Reserve, Financial CrisisThus far, credit conditions remain a cold as Rutland, Vermont on a January night, but there are hints of a thaw in the making. Interest rates for three-month loans in dollars dipped Monday, after policy makers in the United States and Europe offered unlimited dollar funds and Europe governments took actions to recapitalize and bolster banks. The London three-month rate decreased 7 basis points to 4.75%, Bloomberg News reported Monday. Also, the euro interbank offered rate, or Euribor, for one-week loans dropped 26 basis points to ...

Soros sees ray of light in bank recapitalization plan
BloggingStocks — Filed under: International markets, Forecasts, Financial CrisisOne of the world's leading investors has expressing cautious optimism - - underscoring cautious - - regarding the fate of the global financial system. Billionaire investor George Soros said Monday a pledge by European leaders to guarantee new bank financing is "a positive step" may help stabilize global financial markets, Bloomberg News reported. Soros: We're finally getting the leadership we need "In the last 72 hours, I think the European governments got religion and realized that this is a serious problem,'' Soros said ...

To infinity and beyond
self-evident — ... to anyone. Participants will be charged a 75-basis point fee to protect their new debt issues, and a 10-basis point surcharge will be added to a participating institution’s current insurance assessment in order to fully cover the non-interest bearing deposit transaction accounts. Sure, 75 bps should cover it, no problem; the market obviously does not know how to price anything these days. In related news, on Monday the Fed announced it is increasing its reciprocal swap lines from $620 billion to “whatever”. ...

Is a second stimulus check up ahead?
BloggingStocks — Filed under: Politics, Presidential elections, Recession, Financial CrisisWith unemployment rising and the signs of slowdown all around, is a second tax rebate or second stimulus check from Congress up ahead? The U.S. economy continues to slow. More than 800,000 jobs have been lost since the slowdown began about a year ago, and many economists say the lay-offs are likely to continue or even increase. Meanwhile, the world's major industrialized nations are striving to stabilize the global financial system and end a credit crunch that could further damage economies around the world. Well, the ...

Reiterating modest expectations: Think holding Dow 8,000
BloggingStocks — Filed under: Indices, Technical Analysis, S and P 500, DJIA, Recession, Financial CrisisIs it time to rein-in expectations regarding the Dow? Indeed it is, if technical analysis and historical p/e ratios mean anything. Those with visions of a Dow of 11,000 dancing inside their heads need to take a step back, for context and perspective, on the likelihood of a Dow push to that level in the near future. The U.S. economy is in recession, it's shedding jobs, downward corporate earnings revisions are likely, and the world's major economic regions are attempting to re-liquefy credit ...

Ending home foreclosure rise seen as one key factor in stabilizing financial system
BloggingStocks — Filed under: International markets, Forecasts, Housing, Financial CrisisEconomist Allen Sinai, founder of Decision Economics, Friday underscored a dimension of the financial crisis that appears to be getting short-shrift: namely, that U.S. home foreclosures continue to erode the asset base of the U.S. financial system. Efforts by the Fed, ECB and other major central banks to keep credit markets supplied with dollars, as well as bank recapitalization efforts, are critical to ending the financial crisis, but they won't achieve their goal if more is not done to get at the root cause of the crisis: mortgage ...

Ending home foreclosure rise seen as one key factor in stabilizing financial system
BloggingStocks — Filed under: International markets, Forecasts, Housing, Financial CrisisEconomist Allen Sinai, founder of Decision Economics, Friday underscored a dimension of the financial crisis that appears to be getting short-shrift: namely, that U.S. home foreclosures continue to erode the asset base of the U.S. financial system. Efforts by the Fed, ECB and other major central banks to keep credit markets supplied with dollars, as well as bank recapitalization efforts, are critical to ending the financial crisis, but they won't achieve their goal if more is not done to get at the root cause of the crisis: mortgage ...