Comments on: Asian Central Banks Throw Money at Seized-Up Credit Markets http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at.html Sun, 22 Nov 2009 19:08:53 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Lewis B. Sckolnick http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at.html#comment-17556 Lewis B. Sckolnick Fri, 26 Sep 2008 13:30:00 +0000 http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at-seized-up-credit-markets/#comment-17556 Asia today is a clear sign that even 700B would be a bandaide. What we need is confidence. Asia today is a clear sign that even 700B would be a bandaide. What we need is confidence.

]]> By: Matt Dubuque http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at.html#comment-17557 Matt Dubuque Fri, 26 Sep 2008 13:30:00 +0000 http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at-seized-up-credit-markets/#comment-17557 Matthew Dubuque<br/><br/>The consequences of EVERYONE hoarding cash is not inflationary. <br/><br/>Just the opposite.<br/><br/>The highly likely Global Depression will take years, indeed generations to overcome.<br/><br/>All of us need to stay rested and healthy because we will all need to make the best decisions of our lives to cope with what is coming down.<br/><br/>Turn off the television. Get offline and get outside.<br/><br/>There is much more to life than money. There is joy in the laughter of children.<br/><br/>Appreciate that. It is the true value of life.<br/><br/>Matthew Dubuque Matthew Dubuque

The consequences of EVERYONE hoarding cash is not inflationary.

Just the opposite.

The highly likely Global Depression will take years, indeed generations to overcome.

All of us need to stay rested and healthy because we will all need to make the best decisions of our lives to cope with what is coming down.

Turn off the television. Get offline and get outside.

There is much more to life than money. There is joy in the laughter of children.

Appreciate that. It is the true value of life.

Matthew Dubuque

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at.html#comment-17538 Anonymous Fri, 26 Sep 2008 11:54:00 +0000 http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at-seized-up-credit-markets/#comment-17538 It's not just the big commercial banks hoarding cash. One of my clients is a small midwestern bank. I overheard their staff getting marching orders yesterday. They were told to pull back in all of their overnight money and attempt to get several million more from whatever sources possible. It’s not just the big commercial banks hoarding cash. One of my clients is a small midwestern bank. I overheard their staff getting marching orders yesterday. They were told to pull back in all of their overnight money and attempt to get several million more from whatever sources possible.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at.html#comment-17524 Anonymous Fri, 26 Sep 2008 09:54:00 +0000 http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at-seized-up-credit-markets/#comment-17524 A Korean official said there is no reason for an average person to panic over exchange rate because Foreign MONEY Market (or Swap market) is "separate" from Foreign EXCHANGE market. He says while US$ supply is tight in Foreign Money Market, it is not in Foreign Exchange market.<br/><br/>Does this make any sense to you? If US$ is not tight in Foreign Exchange market, why don't commercial banks use that market to get US$?? And whouldn't that make US$ expensive for layman?? A Korean official said there is no reason for an average person to panic over exchange rate because Foreign MONEY Market (or Swap market) is “separate” from Foreign EXCHANGE market. He says while US$ supply is tight in Foreign Money Market, it is not in Foreign Exchange market.

Does this make any sense to you? If US$ is not tight in Foreign Exchange market, why don’t commercial banks use that market to get US$?? And whouldn’t that make US$ expensive for layman??

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at.html#comment-17512 Anonymous Fri, 26 Sep 2008 07:54:00 +0000 http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at-seized-up-credit-markets/#comment-17512 Will 0% interest rate and the $700B ease (don't expect to solve) liquidity problem? At least for 3 months? If so, are they worth?<br/><br/>Once the interest rate goes to 0%, and given that economy is likely to be deflationary in the short-term, what weapon does Fed have to reflate later??<br/><br/>Tate Will 0% interest rate and the $700B ease (don’t expect to solve) liquidity problem? At least for 3 months? If so, are they worth?

Once the interest rate goes to 0%, and given that economy is likely to be deflationary in the short-term, what weapon does Fed have to reflate later??

Tate

]]> By: dh http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at.html#comment-17508 dh Fri, 26 Sep 2008 07:30:00 +0000 http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at-seized-up-credit-markets/#comment-17508 Fed Fund Rate to Zero... they should take the drama out of this and just do it all in one shot<br/><br/>Re: ``Holding the Fed funds rate steady at 2 percent was the right thing to do, while our colleagues at the New York Fed and at the Treasury turned to dealing with the risk of AIG and other choke points in the markets,'' Fisher said. He had dissented in favor of tighter policy on five votes this year by the rate- setting Federal Open Market Committee Fed Fund Rate to Zero… they should take the drama out of this and just do it all in one shot

Re: “Holding the Fed funds rate steady at 2 percent was the right thing to do, while our colleagues at the New York Fed and at the Treasury turned to dealing with the risk of AIG and other choke points in the markets,” Fisher said. He had dissented in favor of tighter policy on five votes this year by the rate- setting Federal Open Market Committee

]]> By: Richard Kline http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at.html#comment-17494 Richard Kline Fri, 26 Sep 2008 06:03:00 +0000 http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at-seized-up-credit-markets/#comment-17494 The Emperor isn't wearing any clothes, any skin, and a lot of meat is gone from the extremities: the zombies got to him, though he's still crawling on. . . . Market shut down for today (Friday)? Might make a lot more sense. But in the end, the markets _will_ come down, and the efforts for going on fifteen months to prop them up only guarantee that their decline to appropriate price levels will no be maximally disorderly in trajectory. The Emperor isn’t wearing any clothes, any skin, and a lot of meat is gone from the extremities: the zombies got to him, though he’s still crawling on. . . . Market shut down for today (Friday)? Might make a lot more sense. But in the end, the markets _will_ come down, and the efforts for going on fifteen months to prop them up only guarantee that their decline to appropriate price levels will no be maximally disorderly in trajectory.

]]> By: Francois http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at.html#comment-17483 Francois Fri, 26 Sep 2008 05:09:00 +0000 http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at-seized-up-credit-markets/#comment-17483 How long before this highly unstable system that is the present credit market tumble for good? How long before this highly unstable system that is the present credit market tumble for good?

]]> By: bg http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at.html#comment-17480 bg Fri, 26 Sep 2008 05:02:00 +0000 http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at-seized-up-credit-markets/#comment-17480 Anybody who believes in efficient markets should watch the stock indexes around the world over the last year. stock markets have consistently reacted much slower than credit spreads. Anybody who believes in efficient markets should watch the stock indexes around the world over the last year. stock markets have consistently reacted much slower than credit spreads.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at.html#comment-17479 Anonymous Fri, 26 Sep 2008 05:01:00 +0000 http://www.nakedcapitalism.com/2008/09/asian-central-banks-throw-money-at-seized-up-credit-markets/#comment-17479 This goes to the cut rate crowd. How can they do that and maintain even the illusion of control or credibility?<br/><br/>They cannot keep it where they are supposed to be now, even opening "branches" all over the world.<br/><br/>If they cut rates, what is supposed to happen? The emperor is not wearing any clothing... This goes to the cut rate crowd. How can they do that and maintain even the illusion of control or credibility?

They cannot keep it where they are supposed to be now, even opening “branches” all over the world.

If they cut rates, what is supposed to happen? The emperor is not wearing any clothing…

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