World's central banks act to ease market strains

gsa1fan · November 29, 2011 10:13PM

Man the Press's!

Justacommeman · November 29, 2011 10:22PM

Yes, this was the big market mover. Interestingly enough China lowered their cash reserves earlier in the very same day! The futures were down -0.7% and jumped to +0.5% on that news alone. Add the global injection news and the markets jump almost another 2%. Yes there is a very big problem out there. MJ

DrBuster · November 29, 2011 10:40PM

Was just reading the cnnmoney version of this. Time to drain the savings for metal?? How close are we really to the Big collapse? It's got to happen eventually.

derryb · November 29, 2011 11:16PM

When the bandaid falls off a few US banks will have their festering, open wounds exposed.

johnny9434 · November 29, 2011 11:25PM

so wheres the next fire going to be?

derryb · November 29, 2011 11:38PM

<< so wheres the next fire going to be? >>

Short-term we are back to stress levels in the USD swap funding market from only a week ago. But on a longer-term basis, this is still extreme by any standards.

Fire ain't out!

pf70collector · November 30, 2011 12:35AM

No more ammunition left. You can only print so much digitial money.

JCMhouston · November 30, 2011 1:39AM

Just remember, the Fed and other central banks will do whatever is best for the JP Morgue/Goldman Sack/BoA. If you keep that in mind when making investment decisions you won't go far wrong.

jmski52 · November 30, 2011 2:23AM

It appears that the way to solve a debt problem is to create new money in order to finance the rollover.

Nothing new here. It all ends up as pressure for new taxes here in the US, of that you can be sure.

KUCH · November 30, 2011 2:49AM

<< Just remember, the Fed and other central banks will do whatever is best for the JP Morgue/Goldman Sack/BoA. If you keep that in mind when making investment decisions you won't go far wrong. >>

If we add Morgan Stanley to that list, is it time to change asset class to Miners? Juniors and Seniors?

derryb · November 30, 2011 3:33AM

Forbes is reporting that the near failure of a major european bank overnight (unnamed) is what brought the quick action.

mhammerman · November 30, 2011 4:56AM

This stuff in the news is starting to look a lot like a BS sammich without the bread but so far I haven't heard anyone talking about notional derivitives...that's when I know we're getting deep down into the BS bidness. Notional value

Justacommeman · November 30, 2011 7:43AM

<< Forbes is reporting that the near failure of a major european bank overnight (unnamed) is what brought the quick action. >>

probably Deutche Bank. MJ

MsMorrisine · November 30, 2011 11:24AM

The future is here.

I think we're still on life support and living day-to-day.

The talking heads on CNBC seemed to think sunny days from here to the end of the year.

I'm thinking "not so fast" and "crushing realization will hit soon" that we are still day by day fighting this enormous battle.

Don't forget, after Europe is US, and Italy's debt is small time action compared to the US.

We can't even agree on what austerity would be. Italy, Ireland, Portugal and Greece seemingly have it more together than our Democrats and Republicans.

I'm not celebrating until the problems are actually SOLVED and OVER WITH.

MsMorrisine · November 30, 2011 12:03PM

and we don't truly know how bad it is out there

derryb · November 30, 2011 1:00PM

Don't be fooled, the printing presses are in reality nothing more than dollar destruction devices.

pf70collector · November 30, 2011 7:49PM

Its obvious now that the Central Banks will not let one of the major Banks fail. A Lehman type event will never happen or become public because it would start a world wide run on the banks. It would be unstoppable and throwing all the money that could be printed will not help. The gig will be up. We are on shakey ground now.

cohodk · November 30, 2011 10:04PM

<< 

<< Forbes is reporting that the near failure of a major european bank overnight (unnamed) is what brought the quick action. >>

probably Deutche Bank. MJ >>

I've always been told the Germans have their act together and their economic engine and productivity is 2nd to none. And if they used Marks the currency would be off to da moon!!!

Justacommeman · November 30, 2011 11:23PM

<< 

<< 

<< Forbes is reporting that the near failure of a major european bank overnight (unnamed) is what brought the quick action. >>

probably Deutche Bank. MJ >>

I've always been told the Germans have their act together and their economic engine and productivity is 2nd to none. And if they used Marks the currency would be off to da moon!!!

>>

Pretty true. Problem is they are too big. Also, too big to fail. This is the bank I think Jim Rodgers has been short all this time. No doubt the Mark would be the fittest of all currencies. MJ

cohodk · December 1, 2011 12:33AM

DB has assets equal to 50% of German GDP. If it failed, I highly doubt the Mark would hold its value. It could be worse though, the 2 big Swiss banks are each more than 3x greater than the Swiss economy. And the fools rushed to buy the Swissie Franc.

jmski52 · December 1, 2011 8:29AM

Pumping up liquidity doesn't seem deflationary to me.

TwoSides2aCoin · December 1, 2011 9:12AM

~Chinese gold jewelry consumption may double in less than 10 years compared with last year's consumption of 452 tons thanks to an increasingly affluent population , the managing director for the Far East at the World Gold Council said Thursday~

Dow Jones' News. I have no opinion.

cohodk · December 1, 2011 10:25AM

<< Pumping up liquidity doesn't seem deflationary to me. >>

Its only inflationary if it is pumped faster than debt is destroyed. A tall task for an central bank.

MsMorrisine · December 1, 2011 10:55AM

<< 

<< Pumping up liquidity doesn't seem deflationary to me. >>

Its only inflationary if it is pumped faster than debt is destroyed. A tall task for an central bank. >>

we all seem to be better at creating debt more than destroying debt.

derryb · December 1, 2011 11:02AM

<< we all seem to be better at creating debt more than destroying debt. >>

Not all of us.

Justacommeman · December 1, 2011 1:16PM

<< DB has assets equal to 50% of German GDP. If it failed, I highly doubt the Mark would hold its value. It could be worse though, the 2 big Swiss banks are each more than 3x greater than the Swiss economy. And the fools rushed to buy the Swissie Franc. >>

Actually I think it would increase the value of both currencies. Back stops would have to be provided as they are way to big to fail. Therefore they can not really fail. History teaches us this from when some US banks did fail in 2008. They will not let the biggest banks fail only the ones they want to. The dollar got stronger when the US banking system was pushed to the brink. Buying the Swiss Franc and holding it has been money in the bank.

Germany is the second largest exporter in the world only slightly behind China. The Mark would not be allowed to fail if it were a singular currency. Like the dollar it would be propped up at all costs.

MJ

jmski52 · December 1, 2011 7:58PM

Its only inflationary if it is pumped faster than debt is destroyed. A tall task for an central bank.

That's exactly the point. There's a whole lot of debt to replace with money, and they are committed to doing it. It's the only way to make their buddies whole, and it's the only way that they know.

It's their game. We're just the "little people". Believing that we have a say in the matter is like thinking that a politician actually has a conversation with a constituent.

World's central banks act to ease market strains

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