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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Dec-01-11 08:20 AM
Response to Reply #12
40. Fed leads central banks in effort to ease funding woes
GOOD OLD UNCLE SUCKER WILL SOON BE DRAINING THE BLOOD OUT OF THE PEASANTS TO FILL THE SWIMMING POOLS OF THE 1%...A COMPENDIUM OF PRESS REPORTS:

Central banks step in to stave off new credit crunch

http://www.guardian.co.uk/business/2011/nov/30/central-...

Stock markets surge as fears for the euro force concerted emergency action to aid cash-strapped banks...The world's major central banks announced concerted emergency measures to underpin fragile eurozone banks and prevent the global financial system from freezing up...In a clear sign that policymakers fear the downturn in the eurozone risks spiralling into a fresh credit crunch where banks stop lending they announced "co-ordinated central bank action to address pressures in global money markets".

Stock markets around the world surged after policymakers said they would cut the interest rate on emergency dollar loans to cash-strapped banks by 0.5 percentage points and extend the scheme until February 2013. They will also establish "temporary bilateral liquidity swap arrangements" between one central bank and another, allowing liquidity to be provided at short notice in any currency "should market conditions so warrant".

"At least they've got their finger on the panic button," said Graham Turner, of GFC Economics in London. "There's an awful lot that central banks can do and this shows that they're not going to sit idly by and let the whole thing implode."

...The joint action was reminiscent of autumn 2008, when central banks came together to slash interest rates and inject liquidity into financial markets in the wake of the collapse of Lehman Brothers...Banking analysts have been warning for some time that eurozone banks, which must reconcile their finances before the end of the year, are running short of dollars to pay US creditors...Jeremy Cook, chief economist at foreign exchange company World First, suggested that central bankers had tired of European leaders' failure to fix the euro crisis. "Cutting swap costs is the equivalent of interest rate cuts," he said. "This may have been a signal that the money markets were a short shove away from complete collapse...

Markets soar after central banks act to ease credit crisis

http://www.telegraph.co.uk/finance/financialcrisis/8926...

Stockmarkets soared as six of the world's richest central banks announced a co-ordinated effort to outflank European political deadlock and unlock the financial markets themselves...The US Federal Reserve led a synchronised wave of announcements from the Bank of England, the European Central Bank and the central banks of Canada, Switzerland and Japan that were designed to pump liquidity into the markets.

The six banks said they were cutting the cost of dollar swap lines, effectively halving the price of banks borrowing dollars to fund themselves from 100bps to 50bps above a base rate. They aimed to unblock the flow of money which, compounded by a severe loss of confidence, is threatening to freeze the financial system again. The banks attempted co-ordinated action in September, but on a far smaller scale.

Just a few hours before, the Bank of China unveiled a similar move by cutting its reserve requirements for banks for the first time in three years...

6 Central Banks Act to Buy Time in Europe Crisis

http://www.nytimes.com/2011/12/01/business/central-bank...

TIME FOR WHAT? THE CYNIC MIGHT ASK...TIME TO GET ANOTHER WAR ON, SINCE LIBYA OBVIOUSLY DIDN'T HAVE THE STIMULATIVE EFFECT THEY EXPECTED? TIME TO GET OBAMA BACK IN OFFICE, AND THE GOLDMAN SATRAPS INSTALLED IN THE CAPITALS OF EUROPE?

..."giving Europe more time to wrestle with its debts"...

YEAH, SURE, THAT'S WHAT THEY ARE DOING.... :rofl:

ECB hints at action if euro zone adopts fiscal pact

http://www.reuters.com/article/2011/12/01/us-eurozone-i...

The new head of the European Central Bank signaled on Thursday it was ready to take stronger action to fight Europe's debt crisis if political leaders agree next week on much tighter budget controls in the 17-nation euro zone...Speaking a day after the world's major central banks took emergency joint action to provide cheaper dollar funding for starved European banks, Mario Draghi painted a dark picture of the state of the banking system.

"A new fiscal compact would be the most important signal from euro area governments for embarking on a path of comprehensive deepening of economic integration. It would also present a clear trajectory for the future evolution of the euro area, thus framing expectations," he told the European Parliament. Draghi did not spell out what action the ECB might take (PONIES FOR EVERYONE!), but it is under huge political and market pressure to massively step up purchases of euro zone government bonds or lend money to the IMF to support ailing Italy and Spain. In the short-term, economists expect the central bank to relieve pressure on banks and an economy heading into recession cutting interest rates next week and announcing longer-term cheap liquidity tenders with easier collateral rules. Markets are pricing in a 25 basis point cut to 1.0 percent on December 8 and Draghi said nothing to dissuade them.

In response to lawmakers' comments, he added that the ECB had scope to act within the European Union treaty and the most important thing was to make sure that frozen credit channels started to work again. Draghi, who faces some of the toughest decisions in the currency's 12-year history after just one month in the job, said the ECB was aware many European banks were in difficulty because of stress on sovereign bonds, tight inter-bank funding markets and scarce collateral. "Downside risks to the economic outlook have increased," he said, noting that the ECB's mandate was to maintain price stability "in both directions" -- a rare indication that the bank is concerned about deflation risks as well as inflation.

Two years into Europe's debt crisis, investors are fleeing the euro zone bond market, European banks are dumping government debt, south European banks are bleeding deposits and a recession looms, fuelling doubts about the survival of the single currency...European Union leaders hold a crucial summit on December 9 at which EU paymaster Germany is pressing for an agreement on treaty change to establish coercive powers to veto national budgets in the euro zone that breach agreed rules. That prompted the chief financial officer of the European Bank for Reconstruction and Development, Manfred Schepers, to tell a Dutch newspaper: "There are seven work days left to save Europe."

AND SO FORTH AND SO ON...
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  -STOCK MARKET WATCH, Thursday, December 1, 2011 Pale Blue Dot  Dec-01-11 05:52 AM   #0 
  - Today's Reports  Pale Blue Dot   Dec-01-11 05:53 AM   #1 
  - Unemployment Higher than Expected, Imagine that!  Demeter   Dec-01-11 08:31 AM   #44 
  - Oh, noes!  hamerfan   Dec-01-11 01:42 PM   #104 
  - Beige Book Shows Stronger Growth, but Europe a Major Threat  Demeter   Dec-01-11 08:52 AM   #52 
  - Have We Turned The Corner on Jobs?  Demeter   Dec-01-11 08:54 AM   #53 
  - U.S. Economy Barely Moving Amid Creeping Disinflation, Beige Book Shows  Demeter   Dec-01-11 08:56 AM   #54 
  - Oil rises to near $101 amid global stocks rally  Pale Blue Dot   Dec-01-11 05:53 AM   #2 
  - U.S. Futures Decline; S&P May Snap 3-Day Gain  Pale Blue Dot   Dec-01-11 05:54 AM   #3 
  - 400 Dow Points Arent What They Used To Be...  rfranklin   Dec-01-11 06:05 AM   #4 
  - Central Banks Treat Fever - Not Bank Disease  DemReadingDU   Dec-01-11 07:17 AM   #12 
     - Fed leads central banks in effort to ease funding woes  Demeter   Dec-01-11 08:20 AM   #40 
        - Commodities Rise to Two-Week High as Fed, Central Banks Boost Liquidity  Demeter   Dec-01-11 08:58 AM   #55 
  - Good morning.  Tansy_Gold   Dec-01-11 06:27 AM   #5 
  - morning miss tansy! nt  xchrom   Dec-01-11 06:48 AM   #6 
  - i'm heading into a different kind of insanity in 48hrs  Roland99   Dec-01-11 06:49 AM   #7 
     - Best wishes to you both! May you find a bit of sanity, safety and security together  Demeter   Dec-01-11 07:21 AM   #13 
     - Congratulations!  DemReadingDU   Dec-01-11 07:35 AM   #16 
     - Wishing you both many fine days together. Being in love is a good thing. eom.  Hotler   Dec-01-11 07:42 AM   #20 
     - that is so sweet! congratulations!  xchrom   Dec-01-11 07:58 AM   #28 
     - Congrats....  AnneD   Dec-01-11 08:33 AM   #45 
     - Congrats to you and your future spouse, Roland99.  Hugin   Dec-01-11 09:09 AM   #60 
     - **Thanks everyone!!**  Roland99   Dec-01-11 11:43 AM   #86 
     - Congratulations  DoBotherMe   Dec-01-11 11:51 AM   #87 
     - Best wishes! n/t  westerebus   Dec-01-11 04:47 PM   #111 
  - europe: Spanish, French Bonds Climb After Auctions; Euro Strengthens  xchrom   Dec-01-11 06:57 AM   #8 
  - European shares turn negative in choppy trade  xchrom   Dec-01-11 07:37 AM   #17 
  - ECB hints at action if euro zone adopts fiscal pact  xchrom   Dec-01-11 07:39 AM   #19 
  - The dash for cash Europes troubled banks are running out of money  xchrom   Dec-01-11 08:02 AM   #30 
  - Did we not just read that American banks were so stuffed with cash  dixiegrrrrl   Dec-01-11 08:38 AM   #46 
     - All that money stuffed into US banks is Capital in Flight from Europe  Demeter   Dec-01-11 08:40 AM   #48 
     - as someone raised in the 50s -- nothing about modern finance & banking makes  xchrom   Dec-01-11 09:06 AM   #59 
        - It's All FRAUD, is What it is  Demeter   Dec-01-11 09:14 AM   #63 
           - +1  xchrom   Dec-01-11 09:26 AM   #67 
           - +++  DemReadingDU   Dec-01-11 09:42 AM   #76 
  - Moscow issues Trans-Caspian Project warning  xchrom   Dec-01-11 08:05 AM   #32 
  - Resource wars getting serious, as predicted.  dixiegrrrrl   Dec-01-11 10:19 AM   #80 
  - Finance Ministers Agree to EU Debt Guarantees  Demeter   Dec-01-11 09:05 AM   #58 
     - Banks row hampers EU bid to halt credit freeze  Demeter   Dec-01-11 09:09 AM   #61 
     - EU Ministers Back National Bank Guarantees With Common Rules  Demeter   Dec-01-11 09:13 AM   #62 
        - Obamas morbid fear of EU meltdown  Demeter   Dec-01-11 09:35 AM   #73 
           - The Never-Ending Eurofiasco By Mike Whitney  Demeter   Dec-01-11 11:07 AM   #83 
           - Yves Smith Snipes:  Demeter   Dec-01-11 12:35 PM   #92 
     - Does Anybody Who Gets It Believe Central Banks Did All That Much Yesterday?  Demeter   Dec-01-11 12:52 PM   #99 
  - Cotton Crop Reaching Record Makes Goldman Bearish: Commodities  xchrom   Dec-01-11 06:59 AM   #9 
  - U.S. Bank Funds Wont Cover MF Global Shortfall, Trustee Says  xchrom   Dec-01-11 07:01 AM   #10 
  - A Hole TOO Big to Fill In  Demeter   Dec-01-11 07:22 AM   #14 
     - I suggest we start filling it with  Tansy_Gold   Dec-01-11 08:14 AM   #37 
        - Is He a Big Enough Man for the Job?  Demeter   Dec-01-11 08:22 AM   #41 
           - He may or may not be, but we won't know until we actually see him there. n/t  Tansy_Gold   Dec-01-11 09:40 AM   #75 
  - Forget Job Creators: The Best Stimulus Is For Shoppers  xchrom   Dec-01-11 07:14 AM   #11 
  - The payroll tax thingy scares the bejeebers out of me  Tansy_Gold   Dec-01-11 07:38 AM   #18 
  - Sing it loud sister. I'm right there with you. eom.  Hotler   Dec-01-11 07:48 AM   #23 
  - And so am I - every word (n/t)  bread_and_roses   Dec-01-11 10:31 AM   #82 
  - Did I Say That?  Demeter   Dec-01-11 07:59 AM   #29 
  - Yes, you did.  Tansy_Gold   Dec-01-11 08:12 AM   #35 
     - That was the purpose of Money  Demeter   Dec-01-11 08:26 AM   #42 
  - Seems like a stealth way to dismantle social security  DemReadingDU   Dec-01-11 08:11 AM   #34 
  - Absolutely.  Tansy_Gold   Dec-01-11 08:13 AM   #36 
  - I am resigned to NO SS for people in their 30/40's.....I fear it will not be there  dixiegrrrrl   Dec-01-11 09:03 AM   #57 
  - Do people think we will continue to receive those SS checks?  DemReadingDU   Dec-01-11 10:03 AM   #78 
     - I have been preparing for the worse since 2007.  dixiegrrrrl   Dec-01-11 10:18 AM   #79 
     - me too, n/t  DemReadingDU   Dec-01-11 03:22 PM   #110 
     - His Discussion of Derivatives is Enlightening and Chilling at the Same time  Demeter   Dec-01-11 11:26 AM   #84 
        - And then, there's the Bibical Jubilee  Demeter   Dec-01-11 11:29 AM   #85 
        - Ilargi has interesting perspective over at TAE  DemReadingDU   Dec-01-11 03:22 PM   #109 
  - yeah...I like the extra money but I'd rather SS be fully funded on its own  Roland99   Dec-01-11 12:04 PM   #89 
     - my opinion  wordpix   Dec-01-11 01:59 PM   #105 
  - This is a tax-scam shell game.  Loge23   Dec-01-11 08:20 AM   #39 
  - +1 n/t  Hotler   Dec-01-11 02:02 PM   #107 
  - Robbing Peter to pay Paul.  westerebus   Dec-01-11 08:29 AM   #43 
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  - Asian markets up on central banks' move to help lending  xchrom   Dec-01-11 07:53 AM   #25 
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  - The Obama Predicament-and the Final Option! Rev. Richard Skaff  Demeter   Dec-01-11 07:45 AM   #22 
  - Low-intensity? Asia Times is interesting...  Ghost Dog   Dec-01-11 01:15 PM   #101 
  - It's so fucked up. eom.  Hotler   Dec-01-11 02:17 PM   #108 
  - Wells Fargo is an ADMITTED money laundering concern.!  dixiegrrrrl   Dec-01-11 09:16 AM   #64 
     - Not even gonna prosecute or break them up  Demeter   Dec-01-11 09:18 AM   #66 
  - south asia: India traders strike against retail reform moves  xchrom   Dec-01-11 07:55 AM   #26 
  - India Transparency International corruption index blow  xchrom   Dec-01-11 07:57 AM   #27 
  - Food inflation rises to 8%  xchrom   Dec-01-11 08:09 AM   #33 
  - Sensex rallies 360 pts on positive global cues  xchrom   Dec-01-11 08:49 AM   #49 
  - Latin American Poverty Levels Fall To Lowest in Two Decades, UN Report Finds  Demeter   Dec-01-11 08:03 AM   #31 
  - Morning Marketeers....  AnneD   Dec-01-11 08:19 AM   #38 
  - Our water is so hard, I'd have to go liquid  Demeter   Dec-01-11 08:38 AM   #47 
  - Just look it up on You Tube.....  AnneD   Dec-01-11 08:50 AM   #51 
  - Making soap!  Juneboarder   Dec-01-11 12:02 PM   #88 
     - It is so easy as to be sinful....  AnneD   Dec-01-11 01:28 PM   #103 
  - Global Capital Descends on Berlin Tech Scene  Demeter   Dec-01-11 08:49 AM   #50 
  - S&P downgrades hit bank funding, counterparty cost  Demeter   Dec-01-11 08:59 AM   #56 
  - Bank of America stock ( BAC) down again today.  dixiegrrrrl   Dec-01-11 09:34 AM   #72 
  - BofA, Goldman Sachs, Citigroup Credit Ratings Cut by S&P  Demeter   Dec-01-11 01:10 PM   #100 
  - Somewhere in the past few days, I've picked up a virus  Demeter   Dec-01-11 09:17 AM   #65 
  - I had one that laid me out all of last week.  Fuddnik   Dec-01-11 09:53 AM   #77 
  - A Banker Speaks, With Regret By NICHOLAS D. KRISTOF  Demeter   Dec-01-11 09:27 AM   #68 
  - Unwittingly, we actually made out good on the mortgage loan game.  dixiegrrrrl   Dec-01-11 10:28 AM   #81 
  - Former Award Winning Chase Banker Describes Predatory Mortgage Lending Practices  Demeter   Dec-01-11 12:50 PM   #98 
  - Congress push to relax US securities laws  Demeter   Dec-01-11 09:30 AM   #69 
  - Yves Smith Opines:  Demeter   Dec-01-11 12:37 PM   #93 
  - US faces pension bill for AMR restructure  Demeter   Dec-01-11 09:30 AM   #70 
  - Buffett makes headlines as he buys local paper  Demeter   Dec-01-11 09:31 AM   #71 
  - FT investigation: A realm fit for a tsar  Demeter   Dec-01-11 09:37 AM   #74 
  - Fed saves Europe's banks as ECB stands pat MUST READ  Demeter   Dec-01-11 12:26 PM   #90 
  - What Does the Fed Know That We Dont?  Demeter   Dec-01-11 12:32 PM   #91 
  - Foreclosure fraud whistleblower found dead  Demeter   Dec-01-11 12:42 PM   #94 
  - Economy is So Good People are Living in Cars  Demeter   Dec-01-11 12:44 PM   #95 
     - Millions of people to become expendable next year  Demeter   Dec-01-11 12:47 PM   #96 
     - Is a Universal Social Net Good Macro Economics?  Demeter   Dec-01-11 12:49 PM   #97 
     - "superfluous people" ...  AnneD   Dec-01-11 02:00 PM   #106 
     - "here in my car. I feel safest of all."  Roland99   Dec-01-11 01:22 PM   #102 
 

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