Banks shift funds out of U.S. to Europe: BIS

[UpInArms]

Source: Reuters

WELLINGTON (Reuters) - Banks transferred funds out of the United States and into Europe in the first three months of 2008 as they turned to safer assets amid the global credit crunch, the Bank for International Settlements said.

"In the first quarter of 2008, reporting banks continued their net transfer of funds out of the United States, a trend evident since the onset of the financial turmoil in mid-2007," the Swiss-based BIS said in its quarterly review of financial markets and banking activity, published on Monday.

It said European banks had cut dollar loans booked by their U.S. offices, resulting in a net outflow from those offices of $259 billion during the first quarter of year, following a net outflow of $238 billion during the second half of 2007.

The BIS said banks stepped up their holdings in public sector debt, while their outstanding debt securities claims in the non-bank sector fell for the first time since 2001.

Read more: http://news.yahoo.com/s/nm/20080901/bs_nm/bis_funds_dc

[whistle]

1. That was predited with the Federal Funds rate at 2.0% and European rates at 4.5% to 5.5%

...American tax payers take the hit while the Central Banks and International Bankesr make yet more pure profits!

[melody]

2. That was Bush's job n/t

[Ghost Dog]

3. Now we just need to trade more oil in Euros & other currencies:

End of USD hegemony and the USA's free lunch.

[natrat]

4. and end of us

[Ghost Dog]

5. I don't see why. The USA would just have to consume more wisely,

and produce in a sustainable way genuinely useful stuff, and pay it's own way like most of the rest of us.

Regime change, sure; a cultural revolution, to a degree no doubt. But the end of America? No way.

Looks like the alternative, after all, would be the end of technologically-developed, relatively-enlightened human culture on this planet.

[skoalyman]

6. and bring back blue collar factory jobs from china

we need better paying jobs besides the low wage stuck in the rut service jobs we have now!:toast:

[Ghost Dog]

7. For sure. And let China

and other places develop sustainably and compete on a more level playing field. :smoke:

[skoalyman]

8. your right and they should get payed a livable wage too.More green factory's

would be nice too