Comments on: Money Market Stress Worsens in London, Europe Despite Bailout Bill http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london.html Mon, 23 Nov 2009 01:41:08 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Juan http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london.html#comment-19724 Juan Mon, 06 Oct 2008 16:31:00 +0000 http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london-europe-despite-bailout-bill/#comment-19724 Hey Yves,<br/><br/>Aren't a lot of ARM loans linked to LIBOR? <br/><br/>Is this continued stress going to seriously compound ARM-loan default rates in the upcoming months? Hey Yves,

Aren’t a lot of ARM loans linked to LIBOR?

Is this continued stress going to seriously compound ARM-loan default rates in the upcoming months?

]]> By: David Habakkuk http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london.html#comment-19716 David Habakkuk Mon, 06 Oct 2008 15:42:00 +0000 http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london-europe-despite-bailout-bill/#comment-19716 curlydan,<br/><br/>I am not sure whether or not London Banker is right in suggesting we are less greedy on our side.<br/><br/>What does I think puzzle me and I think others is the curious arbitrariness in what many American politicians seem to regard as acceptable and unacceptable forms of state intervention.<br/><br/>I wonder whether, now the pressures to guarantee deposits are becoming overwhelming, the logic of the events may push European governments in Swedish directions with surprising rapidity.<br/><br/>If it did, would this have any significant effect on American debates? curlydan,

I am not sure whether or not London Banker is right in suggesting we are less greedy on our side.

What does I think puzzle me and I think others is the curious arbitrariness in what many American politicians seem to regard as acceptable and unacceptable forms of state intervention.

I wonder whether, now the pressures to guarantee deposits are becoming overwhelming, the logic of the events may push European governments in Swedish directions with surprising rapidity.

If it did, would this have any significant effect on American debates?

]]> By: Douglas http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london.html#comment-19714 Douglas Mon, 06 Oct 2008 15:30:00 +0000 http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london-europe-despite-bailout-bill/#comment-19714 Geeze how long can weakness in the USD and the strength in TBONDS coexist?<br/><br/>hey Doc you out there? Geeze how long can weakness in the USD and the strength in TBONDS coexist?

hey Doc you out there?

]]> By: Curlydan http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london.html#comment-19712 Curlydan Mon, 06 Oct 2008 15:13:00 +0000 http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london-europe-despite-bailout-bill/#comment-19712 David H.,<br/><br/>At least the British have plans for a Swedish model. London Banker's blog (londonbanker.blogspot.com) posits that the British are a bit less greedy than Americans, and it appears that they are trying a more equitable solution.<br/><br/>On this side of the pond, we're ready to buy $700B of toxic assets while outsourcing the management of the assets to the same Wall Street firms causing the mess.<br/><br/>Bad Americans!! David H.,

At least the British have plans for a Swedish model. London Banker’s blog (londonbanker.blogspot.com) posits that the British are a bit less greedy than Americans, and it appears that they are trying a more equitable solution.

On this side of the pond, we’re ready to buy $700B of toxic assets while outsourcing the management of the assets to the same Wall Street firms causing the mess.

Bad Americans!!

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london.html#comment-19695 Anonymous Mon, 06 Oct 2008 13:36:00 +0000 http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london-europe-despite-bailout-bill/#comment-19695 Or is it this?<br/><br/>http://ftalphaville.ft.com/blog/2008/10/06/16686/the-450-billion-payout/ Or is it this?

http://ftalphaville.ft.com/blog/2008/10/06/16686/the-450-billion-payout/

]]> By: Matt Dubuque http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london.html#comment-19692 Matt Dubuque Mon, 06 Oct 2008 13:15:00 +0000 http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london-europe-despite-bailout-bill/#comment-19692 Matt Dubuque<br/><br/>The Fed, in coordination with other central banks needs to undertake a substantial open market operation to SELL the shorter maturity government paper and BUY three to six month paper.<br/><br/>This will assist many different term structures.<br/><br/>Matt Dubuque<br/>mdubuque@yahoo.com Matt Dubuque

The Fed, in coordination with other central banks needs to undertake a substantial open market operation to SELL the shorter maturity government paper and BUY three to six month paper.

This will assist many different term structures.

Matt Dubuque
mdubuque@yahoo.com

]]> By: spare some change? http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london.html#comment-19684 spare some change? Mon, 06 Oct 2008 11:53:00 +0000 http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london-europe-despite-bailout-bill/#comment-19684 "The specter of six major financial institutions failing in a mere two weeks has confirmed the wisdom of banks' tendency to hang onto their money and not lend it out to their bretheren."<br/><br/>In other words, to save the world's financial system we need everyone to get together in unison and clap their hands saying, "I do believe in fairies!"<br/><br/>Sarkozky is now calling for a 'new world order' that rewards investment over speculation.<br/><br/>GEE, WHERE WERE YOU BEFORE THE BUBBLE.<br/><br/>Oh, right, bubbles are good when they inflate but not when they burst. Shock doctrine capitalism at work. You'll find the powerful and well connected are in charge of this new world order. “The specter of six major financial institutions failing in a mere two weeks has confirmed the wisdom of banks’ tendency to hang onto their money and not lend it out to their bretheren.”

In other words, to save the world’s financial system we need everyone to get together in unison and clap their hands saying, “I do believe in fairies!”

Sarkozky is now calling for a ‘new world order’ that rewards investment over speculation.

GEE, WHERE WERE YOU BEFORE THE BUBBLE.

Oh, right, bubbles are good when they inflate but not when they burst. Shock doctrine capitalism at work. You’ll find the powerful and well connected are in charge of this new world order.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london.html#comment-19683 Anonymous Mon, 06 Oct 2008 11:41:00 +0000 http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london-europe-despite-bailout-bill/#comment-19683 Are they lending to others?<br/><br/>http://ftalphaville.ft.com/blog/2008/10/01/16558/credit-tappin/ Are they lending to others?

http://ftalphaville.ft.com/blog/2008/10/01/16558/credit-tappin/

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london.html#comment-19682 Anonymous Mon, 06 Oct 2008 11:30:00 +0000 http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london-europe-despite-bailout-bill/#comment-19682 Take a look at overnight Fed Funds rate: .67%<br/><br/>http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm<br/><br/>Other than one day, it has been well below 2.0% for about a week.<br/><br/>The Fed has in effect already lowered interest rates significantly. No doubt this would indicate that it will very soon be done formally. Take a look at overnight Fed Funds rate: .67%

http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm

Other than one day, it has been well below 2.0% for about a week.

The Fed has in effect already lowered interest rates significantly. No doubt this would indicate that it will very soon be done formally.

]]> By: Ginger Yellow http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london.html#comment-19677 Ginger Yellow Mon, 06 Oct 2008 10:57:00 +0000 http://www.nakedcapitalism.com/2008/10/money-market-stress-worsens-in-london-europe-despite-bailout-bill/#comment-19677 "The specter of six major financial institutions failing in a mere two weeks has confirmed the wisdom of banks' tendency to hang onto their money and not lend it out to their bretheren."<br/><br/>A bit of a self-fulfilling prophecy, no? The proximate reason these banks failed is because other banks wouldn't lend to them. “The specter of six major financial institutions failing in a mere two weeks has confirmed the wisdom of banks’ tendency to hang onto their money and not lend it out to their bretheren.”

A bit of a self-fulfilling prophecy, no? The proximate reason these banks failed is because other banks wouldn’t lend to them.

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