Rates cuts are coming! It's June 25, 2003

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Europe and Asia live via credit and a healthy credit system. That system died last month. I was paying attention. Europe will trend downward unless and until this crisis is treated with massive steroids (lower rates). DEFLATION and recession are Europe's chief problem as of last August. Look forward, not in a foggy rear view mirror. Name which years barring the 30's in the US when "DEFLATION" was a problem. Show one piece of evidence that the ECB have stated that they are worried about DEFLATION since last August.

Today Ben Bernanke lectured Bundesbank--Ben was reminding Lim that all central bankers must participate in rate reductions. (US dollar needs help)
http://www.msnbc.msn.com/id/3683270/ I see you have adopted my US currency reference to your "all rates must go down" mantra.


I am quite correct about the credit crisis we are in. It is historic and ECB cannpt dance out of this mess w/o drastic action, sooner or later.So are the ECB lowering rates to help out the US currency or because they are in a credit mess? Which is it Hein?

btw: the Dow up today on little volume. Countrywide fell below the BOA option price of $18 down to $16. The DOW is headed lower until ECB cuts rates.Only newspapers quote the DOW. It is nearly meaningless as an index. A handful of stocks where a $100 stock is worth four times as much value as a $25 stock. As if the price value means anything to the weight of a company's affect on the market. Now you are just confirming that you are an outsider.


ps: I won't give financial advice to people living in a media bubble.That's because your media-derived headline regurgitation would be worthless to someone living in a media bubble. They would have already read your predictions in newspapers before you made them yourself.

The Peoples Bank of China raised its interest rate yesterday for the fifth consecutive time since March. And the yuan is pegged to the US dollar! Mmmm....

That's a 25 basis point rate cut on Tuesday, September 18. Just the start.

I realize how squirrelly you are on clarity.

More rates cuts coming for the next 18 months to two years by ECB too.

The commercial credit crisis is an historic economic threat.

Thanks for reading.

That's a 25 basis point rate cut on Tuesday, September 18. Just the start.

I realize how squirrelly you are on clarity.

More rates cuts coming for the next 18 months to two years by ECB too.

The commercial credit crisis is an historic economic threat.

Thanks for reading.I hope they do drop the interest rate Sept. 18. Most people are predicting it. It won't be a surprise. It's what's expected and what's needed. Global interest rates - a different story. Not to mention that the effect on long term interest rates is of much more importance.

Hope you're learning something here Heiny or I'm wasting my time. Though tying you up in this forum does have some benefit to the members in the other forums.

I am the teacher---and you are the student cranky. Get your role down my boy else I will put Borat on your squad.

Only short term matters. LT = irrelevant for cental bankers. They must act with emotion or be replaced by a Gold standard.

The ECB has already recently redeemed junkpaper from distress banks and will continue to do so--as well as lower rates. Much more help coming.

Jean Claude Trichet will not disappoint. He is a Greenspan disciple, as are all lenders of last resort (central banks).

$5 Trillion junk paper problems require massive steroid trauma care.


I hope they do drop the interest rate Sept. 18. Most people are predicting it. It won't be a surprise. It's what's expected and what's needed. Global interest rates - a different story. Not to mention that the effect on long term interest rates is of much more importance.

Hope you're learning something here Heiny or I'm wasting my time. Though tying you up in this forum does have some benefit to the members in the other forums.

So you think the Fed is not concerned with the treasury bond market? Tisk. Tisk.

Oh Heiny. You are such a disrespectful student. When are you ever going to learn anything with that attitude. I am now going to have to send you out of the class. You can rant as much as you like from outside but only the janitor will possibly hear you. And if you keep it up, the principal will have to send away from the school again and you know what that means. Now if you'd only taken that chip off your shoulder and listened instead of watching your Borat or whatever, you'd have grown up and learned something by now.



I am the teacher---and you are the student cranky. Get your role down my boy else I will put Borat on your squad.

Only short term matters. LT = irrelevant for cental bankers. They must act with emotion or be replaced by a Gold standard.

The ECB has already recently redeemed junkpaper from distress banks and will continue to do so--as well as lower rates. Much more help coming.

Jean Claude Trichet will not disappoint. He is a Greenspan disciple, as are all lenders of last resort (central banks).

$5 Trillion junk paper problems require massive steroid trauma care.

Huh? What T-Mobile crack are smoking now Crankhead?

Treasury sales remain essential to fund the global blood-for-oil war, Medicare and SSI entitlements.

Because Jean Claude Trichet & Ben Bernanke are a team---BOTH will lower rates and redeem junk CDOs. (central bankers must stick together)

As I have alreay written many times.

You won't pass my class at this rate.

So you think the Fed is not concerned with the treasury bond market? Tisk. Tisk.

Oh Heiny. You are such a disrespectful student. When are you ever going to learn anything with that attitude. I am now going to have to send you out of the class. You can rant as much as you like from outside but only the janitor will possibly hear you. And if you keep it up, the principal will have to send away from the school again and you know what that means. Now if you'd only taken that chip off your shoulder and listened instead of watching your Borat or whatever, you'd have grown up and learned something by now.

Oh Heiny. No talking back now as you leave the class. Just so you may have a chance of passing economics eventually. Listen carefully......

US Long Term Interest Rates parallel US Treasury Bond yields. The treasury bond market drives LT interest rates and finance companies, including banks, follow. You can't have the Fed concerned with one and not the other.
Only short term interest rates matter. Long term is irrelevant for Central BankersTreasury sales remain essential to fund the global blood-for-oil war, Medicare and SSI entitlements.Bye. Bye.

That's a 25 basis point cut on fed funds.


ECB to follow soon.

That's a 25 basis point cut on fed funds.


ECB to follow soon.
Yawn.

That's a 25 basis point cut on fed funds.


ECB to follow soon.
Nike hedge fund Ulrich conspiracy, right?

Or is it cow blood nike shoes fanny fanny bo banny?

25 bps says "yea, we know there is some instability, and here is an empty gesture to help stem the unrealistic panic in the market."

That's a 25 basis point cut on fed funds.


ECB to follow soon.

Half percent drop had been forecast - but the Fed only dropped it by quarter percent.
The issues facing the Fed (US economy) are different.
The Fed has no other choice.
I suggst that you re-name the title of this thread.

As I told you six weeks ago when this saga began, the ECB and the BoE will not drop rates.
Both banks refused to lower the rates in August and September.
The issues facing both the British and European economies are different to those facing the US economy.
Inflation in this region dictates the level at which interest rates are set.

Nike hedge fund Ulrich conspiracy, right?

Or is it cow blood nike shoes fanny fanny bo banny?

25 bps says "yea, we know there is some instability, and here is an empty gesture to help stem the unrealistic panic in the market."

agreed.

Half percent drop had been forecast - but the Fed only dropped it by quarter percent.
The issues facing the Fed (US economy) are different.
The Fed has no other choice.
I suggst that you re-name the title of this thread.

As I told you six weeks ago when this saga began, the ECB and the BoE will not drop rates.
Both banks refused to lower the rates in August and September.
The issues facing both the British and European economies are different to those facing the US economy.
Inflation in this region dictates the level at which interest rates are set.Agreed

Nike hedge fund Ulrich conspiracy, right?

Or is it cow blood nike shoes fanny fanny bo banny?

25 bps says "yea, we know there is some instability, and here is an empty gesture to help stem the unrealistic panic in the market."Agreed and LOL:D . And TFF - great advertisement for plastic surgery. Though I can't see them, I suspect you had your teeth redone as well.

And Lim - Suggest you could do with an avatar makeover as well. No one that looks that unhealthy should be riding a bike or following global market gyrations.

Open market purchases (collatoral guarantees) are stealth rate cuts.

Still the rates cuts are coming fast and furious.

Gotta love it when the Bank of England capitulates on CDO junk paper.
http://www.allheadlinenews.com/articles/7008554376

Besides offering up depositor guarantees--they also ponied up 8.8 Billion pounds in 'Emergency tender'. I call it another bailout.

Hein is correct.Now your multi-personalities are talking to each other??

For the sake of your health, please stay on your medication.

Besides offering up depositor guarantees--they also ponied up 8.8 Billion pounds in 'Emergency tender'.



Let's be clear here.

You're attempting to spin this : BoE would not have opened a line of credit to NR, if NR was insolvent or was deemed to be at risk.
Line of credit is charged at a higher rate of interest than normal interest rate.
The BoE wouldn't have extended any credit line to NR if it thought that it would not be able to repay the line of credit.

Separately, BoE has guaranteed depositors savings which is quite separate to the extension of credit NR.



I call it another bailout.

Hein is correct.

A bailout is when a bank is insolvent and cannot meet it's liabilities.

If NR couldn't meet it's liabilities - and required a bailout - the BoE wouldn't be extending credit lines to them.
Hein is incorrect.

Let's be clear here.

You're attempting to spin this : BoE would not have opened a line of credit to NR, if NR was insolvent or was deemed to be at risk.
Line of credit is charged at a higher rate of interest than normal interest rate.
The BoE wouldn't have extended any credit line to NR if it thought that it would not be able to repay the line of credit.

Separately, BoE has guaranteed depositors savings which is quite separate to the extension of credit NR.



A bailout is when a bank is insolvent and cannot meet it's liabilities.

If NR couldn't meet it's liabilities - and required a bailout - the BoE wouldn't be extending credit lines to them.
Hein is incorrect.Not sure on that one Lim, though I might be misunderstanding you. IMO, most banks (and most firms with significant debt) would be insolvent if all creditors (including depositors) wanted to call-in their deposits and loans. Fire sale asset values are a lot different to booked values.

I agree with you that any central bank is going to use discretion on who they lend to. But I understood a bailout to just be a large lump of cash that is given in exchange for much smaller long term cash flows (as are all loans - except here no one else will lend) to mitigate the risk of a sizable firm collapsing in the short term, due to a large, short-term cash obligation. It takes away the short term bankruptcy risk to an otherwise self-sufficient (subjective judgment) business.

Barings would be still going today probably if they had more friends in higher places. Ing could see the long term asset value, once the short term cash drain (creditors) was sated.

Hein is never wrong about fraud. Never.

ECB is already active with open market purchases of CDO junk paper in Germany and Switzerland banks---aka: stealth rate cuts

Wake up and smell the hedge funds, off-shore tax evasion, reg dodging, money launderying. You were schooled on this by IOC's Verbruggen.

Grand Cayman--a pleasant place to register your hedge fund.
40 of the top banks
54 countries
80% of all hedge funds registered there
low risk profile for money laundering, tax evasion, drug dealing, CDO swaps, banking reg evasion and evading central banking monitoring.

http://www.gocayman.ky/content/view/35/92

In Old Vienna they now bank in the warm Caymans
http://www.sovereignsociety.com/offshore1822.html

Dead Crocodiles Found Beached On the Queen's Cayman Islands
http://www.larouchepub.com/other/2007/3437crocodiles_queen's_island.html

As a suggestion - when attempting to post under an alias, I would suggest that you use a different syntax and parenthesis when posting, "hemopure".
Nice try though.

And regardless of whichever alias you're using, the fact is that interest rates haven't been cut by the BoE or ECB since this "crisis" on 2nd August nor will they be cut.

Not sure on that one Lim, though I might be misunderstanding you. IMO, most banks (and most firms with significant debt) would be insolvent if all creditors (including depositors) wanted to call-in their deposits and loans. Fire sale asset values are a lot different to booked values.

I agree with you that any central bank is going to use discretion on who they lend to. But I understood a bailout to just be a large lump of cash that is given in exchange for much smaller long term cash flows (as are all loans - except here no one else will lend) to mitigate the risk of a sizable firm collapsing in the short term, due to a large, short-term cash obligation. It takes away the short term bankruptcy risk to an otherwise self-sufficient (subjective judgment) business.

Barings would be still going today probably if they had more friends in higher places. Ing could see the long term asset value, once the short term cash drain (creditors) was sated.

The Barings analogy is slightly different in that the balance sheet of Barings
had a gaping hole in it.
NR's situation is different in that it's situation is as a result of difficulties accessing liquidity from a wholesale market that is refusing to lend money.

Of course the BoE could have propped up Barings - but Barings were making losses.
NR's situation isn't the same as Barings.