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Central Bank Bailout
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Looks like a bold move, this central bank bailout, acknowledging the severity of credit problems. The Federal Reserve, European Central Bank and other central banks in the UK, Canada and Switzerland will offer cash loans, through some kind of auction, as a central bank bailout of the credit industry. Does anyone really think this will work? Haven't we reached a point of inevitable recession? I know worry is that if banks are having trouble getting credit, they will raise their rates This would bring spending to a standstill, as we've already seen indicated. This could push the US economy into a recession, and affect global economic growth. This central bank bailout comes after earlier interest rate cuts by our Fed and Bank of England, which failed to ease inter-bank rates. As Ian Kernohan of RLAM put it about the central bank bailout, "This news just goes to illustrate again how serious the illiquidity issue in money markets has become. This doesn't change my view that the UK economy will slow next year." Hold on, everyone!
About this poster:
news junkie
Posted by:
teichos
(female, mid-30s)
(Posted 12/13/07)
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Responses (3)
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Anonymous
(12/16):
Ahhh, the bail out. So many to blame, so little time. The banks were all in bed with each other when the party was going on. How history repeats itself - "There is no bubble" - "It is different this time" - "We have reduced risk by securitizing mortgages". For all the brain power on Wall Street with their mega-bonuses they failed to see the house of cards they were building. The homeowners that didn't read the fine print. Pressure sales, etc. If anyone tells you you don't have to read the fine print - sign here, have the BALLS to stand up and walk away. The other Americans that spend, spend, spend, and oh yeah, SPEND. Numbskulls - you have to pay the bill some time. As we go into a luquidity crisis what reassuring words do we hear from W? Static. Just remember you gotta love the free market,(so long as the big boys don't get burned - then bail them out just like in the S&L crisis). Ooops HOMELAND SECURITY IS ON TO ME, AHHHH GOT TOg,.gjj jktlgh
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Bones
(12/17):
well said anonymous - i complete agree with you. I wish they would publish the video clips of all the "experts" that said there as no bubble for the last 12 months. Complete idiots.
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teichos
(12/18):
Yes, well put, Anon. I get so disheartened at the pure public relations BS coming out of these guys. "There is no problem", "there is no problem", etc. Meanwhile, the house of cards is actually falling (it just takes time). Nobody will admit how hollowed-out the nation really is.
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