Comments on: Signs of Contagion: Interest Rates Rise in Asia http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise.html Mon, 23 Nov 2009 10:17:20 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise.html#comment-18480 Anonymous Tue, 30 Sep 2008 16:25:00 +0000 http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise-in-asia/#comment-18480 Is it possible the Central Banks might scare the Banks by saying that if you won't start lending we (the Central Banks) might start lending directly to large corporations and to-- god forbid-- HEDGE FUNDS... A crazy thought for crazy times.. Is it possible the Central Banks might scare the Banks by saying that if you won’t start lending we (the Central Banks) might start lending directly to large corporations and to– god forbid– HEDGE FUNDS… A crazy thought for crazy times..

]]> By: PureGuesswork http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise.html#comment-18447 PureGuesswork Tue, 30 Sep 2008 11:17:00 +0000 http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise-in-asia/#comment-18447 Overnight dollar libor 6.875%<br/>(slightly above o/n sterling and over 200 basis pts above o/n euro). Buddy, can u spare a dime? Overnight dollar libor 6.875%
(slightly above o/n sterling and over 200 basis pts above o/n euro). Buddy, can u spare a dime?

]]> By: a http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise.html#comment-18445 a Tue, 30 Sep 2008 11:01:00 +0000 http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise-in-asia/#comment-18445 As I understand it Japanese banks have been reluctant to lend JPY to European and American banks for six months or longer, so the funding for the latter is (again) much higher. As I understand it Japanese banks have been reluctant to lend JPY to European and American banks for six months or longer, so the funding for the latter is (again) much higher.

]]> By: River http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise.html#comment-18433 River Tue, 30 Sep 2008 09:07:00 +0000 http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise-in-asia/#comment-18433 If rates are lowered to zero then the currency is at risk of becoming a 'carry trade' or 'carry currency', as happened to the Yen.<br/><br/>The case for inflation in the near term is zilch. Dollars are being withdrawn via deflationary losses far faster than dollars are being added by the Fed and this will continue to be the situation untill housing has corrected to affordable levels. <br/><br/>Most people are in denial about the collapse of the value of their homes and are unwilling to sell for their 'new value'. Sound familiar?<br/><br/>The unwind is far from over and if hyper inflation is to occur it will be after the leverage unwind, imo. At this time I see no mechanisim for the government to pump more money into the system than is being destroyed by deflationary forces.<br/><br/>River If rates are lowered to zero then the currency is at risk of becoming a ‘carry trade’ or ‘carry currency’, as happened to the Yen.

The case for inflation in the near term is zilch. Dollars are being withdrawn via deflationary losses far faster than dollars are being added by the Fed and this will continue to be the situation untill housing has corrected to affordable levels.

Most people are in denial about the collapse of the value of their homes and are unwilling to sell for their ‘new value’. Sound familiar?

The unwind is far from over and if hyper inflation is to occur it will be after the leverage unwind, imo. At this time I see no mechanisim for the government to pump more money into the system than is being destroyed by deflationary forces.

River

]]> By: Anonymous http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise.html#comment-18429 Anonymous Tue, 30 Sep 2008 07:49:00 +0000 http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise-in-asia/#comment-18429 Futures going vertical, another dozen handles and the entire "post vote" decline will have been eliminated. Somehow, somewhere, somebody has solved something. Fear? what Fear? Futures going vertical, another dozen handles and the entire “post vote” decline will have been eliminated. Somehow, somewhere, somebody has solved something. Fear? what Fear?

]]> By: alan von altendorf http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise.html#comment-18428 alan von altendorf Tue, 30 Sep 2008 07:44:00 +0000 http://www.nakedcapitalism.com/2008/09/signs-of-contagion-interest-rates-rise-in-asia/#comment-18428 Roubini says lower rates (to zero?) and on the other side of the world Australian govt, ABM Amro and UBS are all saying the same thing, need to dramatically lower interest rates pronto.<br/><br/>I don't think it matters. Japan tried it, didn't change anything. Let the credit markets decide what rates should be -- sky high, most likely, to offset credit risk.<br/><br/>Official rates are hooey. If govts really want to help, they should cut taxes and get the hell out of the way. Roubini says lower rates (to zero?) and on the other side of the world Australian govt, ABM Amro and UBS are all saying the same thing, need to dramatically lower interest rates pronto.

I don’t think it matters. Japan tried it, didn’t change anything. Let the credit markets decide what rates should be — sky high, most likely, to offset credit risk.

Official rates are hooey. If govts really want to help, they should cut taxes and get the hell out of the way.

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