Posted on 08/20/2007 8:58:12 AM PDT by Hydroshock
LONDON (CNNMoney.com) -- The Federal Reserve's move to encourage bank lending last week has helped ease some of the panic in financial markets, but the underlying problems that led to the seizing up of credit markets are still there - and won't disappear overnight.
The credit crisis escalated last week, forcing the Fed on Friday to cut the overnight interest rate it charges member banks - a rare move for the central bank.
The Fed's move immediately helped restore some measure of calm to global markets. From New York to London to Tokyo, stocks soared after the Fed intervened, although Wall Street struggled to keep up the rally early Monday.
Risk returns with a vengeance The lowering of the so-called discount rate should help money markets stabilize, analysts said. But the broader credit market is still working through the problems at the root of the crisis, which means certain long-term borrowers will face difficulty getting financing for some time.
"In terms of short-term liquidity, the banks have got that under control," said Orlando Green, a fixed-income strategist at investment bank Calyon in London.
(Excerpt) Read more at money.cnn.com ...
Its The End Of The World As We Know It(And I Feel Fine)
That’s great, it starts with an earthquake,
birds and snakes, an aeroplane - Lenny Bruce is not afraid.
Eye of a hurricane, listen to yourself churn -
world serves its own needs,
Don’t mis serve your own needs.
Feed it off an aux speak, grunt no, strength no.
Latter starts to clatter with fear fight, down height.
Wire in a fire, representing seven games in a government for hire and a combat site.
Left of west, was a coming in a hurry with the furies breathing down your neck.
Team by team reporters baffled, trumped, tethered, cropped.
Look at that low playing! Fine then.
Uh oh, overflow, population, common food, but it’ll do.
Save yourself, serve yourself.
World serves its own needs, listen to your heart bleed.
Tell me with the rapture and the reverent in the right - right.
You vitriolic, patriotic, slam, fight, bright light, feeling pretty psyched.
It’s the end of the world as we know it.
It’s the end of the world as we know it.
It’s the end of the world as we know it and I feel fine.
Six o’clock - TV hour. Don’t get caught in Foreign towers.
Slash and burn, return, listen to yourself churn.
Lock him in uniform and book burning, blood running.
Every motive escalate. Automotive incinerate.
Light a candle, light a votive. Step down, step down.
Watch a heel crush, crush.
Uh oh, this means no fear - cavalier. Renegade and steer clear!
A tournament, a tournament, a tournament of lies.
Offer me solutions, offer me alternatives and I decline.
It’s the end of the world as we know it.
It’s the end of the world as we know it.
It’s the end of the world as we know it and I feel fine.
(It’s Time I had some time alone)
It’s the end of the world as we know it.
It’s the end of the world as we know it.
It’s the end of the world as we know it and I feel fine.
(It’s Time I had some time alone)
The other night I tripped the lights continental drift divide.
Mount St. Edelite. Leonard Bernstein.
Leonid Brezhnev, Lenny Bruce and Lester Banks.
Birthday party, cheesecake, jelly bean, boom!
You symbiotic, patriotic, slam, book,neck, right? Right.
It’s the end of the world as we know it.
It’s the end of the world as we know it.
It’s the end of the world as we know it and I feel fine...fine...
I have this vision....
Ron Paul gets elected President.
There is a liquidity crunch like we had last week.
Ron Paul nationalizes the national guard and tells them to dig for gold as fast as possible.
Down 40 now. I am probably on a delayed quote.
We'll be getting a new realtor.
Even as the pyramid scheme is clearly unraveling, they keep looking for suckers.
I saw 60+ a few minutes ago. THe fed did not solve the underlying problem, they just slapped a bandaid on it.
Get a good RE attorney and sell it yourself.
Nah. He would end all foreign aid, institute balanced trade with China and bring the troops home from fighting foreign wars to protect the world. That would provide all the 'liquidity' needed. Hope other candidates think of this solution quickly.
It would have been a *spectacular* implosion if the Fed hadn’t eased before October 15th.
Lending institutions were out of cash.
It reminds me of Pierre the Famous French Fighter Pilot. Pierre struts into a bar, grabs the most beautiful waitress, kisses her and tells her that she deserves to have only the best man in the whole world.
She slaps him. One of his friends grabs him and asks him why he did that, to which he replied “I am Pierre the Famous French Fighter Pilot, I go after only the best, and when I go down, I go down in flames.”
A beautiful woman walks by him at that point so he grabs her, kisses her and tells her that she deserves to have only the best man in the whole world. She says “my hotel room is upstairs” and off they go.
Pierre grabs a bottle of cognac and a bottle of champaigne as they pass the bar. They reach her room and he explains that her cleaveage deserves only the finest champaign...and he promptly pours it onto her dress and buries his head in her chest.
The girl gets quite excited!
So Pierre grabs the bottle of cognac and pours it onto her panties. The girl squeals! Then Pierre pulls out a match and sets the cognac on fire.
The girl says “What the heck are you doing?!”
He replies “I am Pierre the Famous French Fighter Pilot, and when I go down, I go down in flames.”
Ba dump bump...
Well, the Fed just took away the cognac and the match, but Pierre is still in the room with our darling economic girl.
So more must be done to avoid getting screwed.
>>Nah. He would end all foreign aid, institute balanced trade with China and bring the troops home from fighting foreign wars to protect the world. That would provide all the ‘liquidity’ needed. Hope other candidates think of this solution quickly.<<
So which one of those adds $100 billion of liquidity in 24 hours?
The gold standard is how the all the panic and bank runs used to happen.
We are looking to steal...er...buy a property.
This is a perfect time for a con artist. Got the gift of jive? Anyway, DJIA down 70 at 13008
In my mom’s subdivsion, there is a house that has entered foreclosure it is being sold for 80 cent on the dollar. Nice house, good area, well maintained. Just at 3400 sq ft more house then I want.
Folks, stock up on your dried beans and salt pork. Hope your garden made well this year and ya were able to put some up; otherwise, hope you like the taste of cheap Chicom food stuffs.
Very true. They need to lower the funds rate to market levels.
I’m renting currently. When I buy I plan to pay cash to avoid the interest rates so I need the prices to drop a bit more. I’ve figured the decline in the local FL RE market will make up for the rent over the next 12-18 months. There’s also the long-term tax and insurance benefits of a lower-priced property.
It is to low as it is.
The yield on the 3 month bond is down over 100 basis points today to near 2%. Ignore reality at your peril.
THe reality is that real inflation is creeping up, and we need to reign it in.
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