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

Discussion in 'Your Bloody Soap Box' started by Hein-Verbruggen, Aug 28, 2007.

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  1. Crankyfeet

    Crankyfeet New Member

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    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.

    I see you have adopted my US currency reference to your "all rates must go down" mantra.

    So are the ECB lowering rates to help out the US currency or because they are in a credit mess? Which is it Hein?

    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.


    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.
     


  2. Crankyfeet

    Crankyfeet New Member

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    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....
     
  3. Hein-Verbruggen

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    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.
     
  4. Crankyfeet

    Crankyfeet New Member

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    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.
     
  5. Hein-Verbruggen

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    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.


     
  6. Crankyfeet

    Crankyfeet New Member

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    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.



     
  7. Hein-Verbruggen

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    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.

     
  8. Crankyfeet

    Crankyfeet New Member

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    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.
    Bye. Bye.
     
  9. Hein-Verbruggen

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


    ECB to follow soon.
     
  10. Crankyfeet

    Crankyfeet New Member

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    Yawn.
     
  11. thoughtforfood

    thoughtforfood New Member

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    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."
     
  12. limerickman

    limerickman Moderator

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    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.
     
  13. limerickman

    limerickman Moderator

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    agreed.
     
  14. Crankyfeet

    Crankyfeet New Member

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    Agreed
     
  15. Crankyfeet

    Crankyfeet New Member

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    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.
     
  16. Hemopure

    Hemopure Banned

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    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.
     
  17. Crankyfeet

    Crankyfeet New Member

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    Now your multi-personalities are talking to each other??

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

    limerickman Moderator

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    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.
     
  19. Hemopure

    Hemopure Banned

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    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
     
  20. Crankyfeet

    Crankyfeet New Member

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    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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