Page 4 - Rates cuts are coming! It's June 25, 2003

17-09.-2007, 05:24 AM

#46

Crankyfeet

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

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.

Quote:

Originally Posted by Hein-Verbruggen

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.

Last edited by Crankyfeet : 17-09.-2007 at 06:00 AM.

18-09.-2007, 05:36 AM

#47

Hein-Verbruggen

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

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.

Quote:

Originally Posted by Crankyfeet

18-09.-2007, 06:32 AM

#48

Crankyfeet

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

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.

Quote:

Originally Posted by Heiny-Verbuggerin

Only short term interest rates matter. Long term is irrelevant for Central Bankers

Quote:

Originally Posted by Heiny-Verbuggerin

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

Bye. Bye.

Last edited by Crankyfeet : 18-09.-2007 at 06:40 AM.

18-09.-2007, 10:11 AM	#49
Hein-Verbruggen Banned Join Date: Aug 2007 Location: Guam Posts: 188	Re: Rates cuts are coming! It's June 25, 2003 That's a 25 basis point cut on fed funds. ECB to follow soon.

18-09.-2007, 10:40 AM

#50

Crankyfeet

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

Quote:

Originally Posted by Hein-Verbruggen

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

ECB to follow soon.

Yawn.

18-09.-2007, 11:28 PM

#51

thoughtforfood

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

Quote:

Originally Posted by Hein-Verbruggen

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."

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19-09.-2007, 01:39 AM

#52

limerickman

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

Quote:

Originally Posted by Hein-Verbruggen

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.

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.."But finally the last thing I’ll say to the people who don’t believe in cycling, the cynics and the sceptics. I'm sorry for you. I’m sorry that you can’t dream big. [I]I'm sorry you don't believe in miracles. You should believe in these athletes, and you should believe in these people. I'll be a fan of the Tour de France for as long as I live. And there are no secrets" - this is a hard sporting event and hard work wins it - Armstrong 2005 TDF
morelike hypocrisy.

19-09.-2007, 01:40 AM

#53

limerickman

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

Quote:

Originally Posted by thoughtforfood

agreed.

19-09.-2007, 06:07 AM

#54

Crankyfeet

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

Quote:

Originally Posted by limerickman

Agreed

19-09.-2007, 06:12 AM

#55

Crankyfeet

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

Quote:

Originally Posted by thoughtforfood

Agreed and LOL

. 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.

Last edited by Crankyfeet : 19-09.-2007 at 06:20 AM.

19-09.-2007, 06:23 AM

#57

Crankyfeet

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

Quote:

Originally Posted by Hemopure

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.

19-09.-2007, 06:35 AM

#58

limerickman

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

Quote:

Originally Posted by Hemopure

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

Quote:

Originally Posted by Hemopure

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.

19-09.-2007, 07:20 AM

#60

Crankyfeet

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

Quote:

Originally Posted by limerickman

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.

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