Title: Throwing Money into the Fire
Post by Christodd on 08/10/07 at 08:45:40
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When the nations biggest cheerleader comes out to explain the disaster that we are viewing first hand , And to try to calm the masses then you know that it is only but a matter of time. The end result remains the same.So much being injected to keep things from exploding . For it shall implode and what actions they are taking will only serve to make the comming Depression much much worse.
It has started , The bleeding has started and it is a wound that can not be stitched shut. Soon enough the dam shall burst reguardless how much money is thrown into the mix.
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The European Central Bank made a second move to boost liquidity in the financial market Friday, putting 61.05 billion ($83.6 billion) into the euro money markets, having already injected 94.8 billion euros Thursday.
The central bank set a tender for 3-day variable-rate securities Friday morning, and said accepted 100% of bids at a marginal rate of 4.05% and higher. The average weighted rate of the securities was 4.08%.
Sixty-two banks bid a total of 110.035 billion euros ($150.62 billion), compared to 49 banks which bid on Thursday at a rate of 4%, Reuters reported.
The liquidity-providing fine-tuning operation follows up on the operation conducted yesterday and aims to assure orderly conditions in the euro money market," the ECB said on its official Web site.
The start date for the securities is Aug. 10 and they expire on Aug. 13. The 94.8 billion euros of securities issued by the ECB on Thursday mature on Friday, the central bank said.
The unprecedented move to ease lending from the governing council comes during an interest-rate tightening cycle for the European Union.
"There is a credit shortage ... what you have to do is cut interest rates," Roger Nightingale, economist at Millennium Global Investments, told CNBC.com, adding that the ECB and Fed "raised rates too late in the period of growth."
The seizing up of corporate credit "has to be psychological," as "money supply is high and growing rapidly … there should be loads of liquidity out there," Nightingale added.
The above article taken from
http://www.cnbc.com/id/20209074 // Fair use and discussion rules apply
Extra note to the above ...........The European Central Bank, Federal Reserve and Bank of Japan have all pumped additional funds into markets as banks have scrambled for cash.
This is a huge dot on the conditions we are having , And the dot is blood red
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Title: Re: Throwing Money into the Fire
Post by Christodd on 08/10/07 at 12:00:42
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The Titanic is taking on water. Very soon the pumps will not hold the floods out and shortly it must take it's place in history , For have we not come full circle.
We have reached a end a footmarker in history and the new dawn approaches. What is real what is reality is all but in perception. And while things may hang on a bit longer , As I have said before the end result will be but the same.
I only have the good fortune of not having to live it. I will send prayers that each and everyone of my family are not hurt by all of this.My family is huge , it would be the entire forum but also the entire world, But you must also help . Prayers alone will not be enough. If you have not prepped you are just about out of time to do so.
The empty cup shall pour upon the entire globe and a great sorrow shall overcome a great number of people , The Signs all being present , only to few would listen
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In an attempt to soothe market fears of a global credit crunch, the Federal Reserve on Friday provided additional liquidity into the banking system.
The Fed provided the reserves in two installments. Early Friday morning, the Fed added $19 billion of temporary reserves to the banking system through 3-day repurchase agreements. Then, in a second move, the Fed made a second round of 3-day repurchase agreement, totaling $16 billion. By comparison, the Fed added $7.5 billion through 3-day repurchase agreements last Friday.
Between the two injections of reserves, the Fed made a rare statement in which it said it would provide liquidity as needed "to facilitate the orderly functioning of financial markets".
"In current circumstances, depository institutions may experience unusual funding needs because of dislocations in money and credit markets," it said.
Major central banks in Europe and Asia have been adding temporary additional liquidity to the banking system in the past two days as short-term interest rates spiked in response to banks' decreased willingness to lend to each other.
"Today's action indicates that (Fed policy-makers) are being more pro-active to ensure financial stability," said David Katz, chief investment officer at Matrix Asset Advisors
in New York.
The Fed on Tuesday did not cut a key interest rate, called the federal funds rate, which is currently at 5.25 percent. The funds rate is interest banks charge each other on overnight loans.
Instead, the Fed is seeking to provide reassurance to investors that the central bank will pump extra money into the U.S. financial system to make sure the credit crunch doesn't worsen.
"In current circumstances, depository institutions may experience unusual funding needs because of dislocations in money and credit markets," the Fed said.
It told banks that the Fed's discount window -- where banks can turn in an emergency for short-term loans -- is available as a source of funding.
The fed funds rate was trading at 6 percent in early Friday morning trade, but fell back to 5.25 percent shortly after the operation, in line with the target set by the central bank. It
was last trading at 5.375 percent.
The single $19 billion fund injection followed a total $24 billion injection on Thursday in two separate operations.
The Fed said all of the collateral accepted in the 3-day repo on Friday was mortgage-backed debt. The repurchase was the largest 3-day operation in at least a year.
The Fed added a total of $68.5 billion to its reserves this week, compared with a total of $50.25 billion last week.
Link:
http://www.prophecies.us/yabb
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