Things are coming apart this morning...
ECB Offers Unlimited Cash as Bank Lending Costs Soar: The European Central Bank, in an unprecedented response to a sudden demand for cash from banks roiled by the subprime mortgage collapse in the U.S., loaned 94.8 billion euros ($130.2 billion) to assuage a credit crunch.
BNP Paribas Freezes Funds as Loan Losses Roil Markets: BNP Paribas SA, France's biggest bank, halted withdrawals from three investment funds because it couldn't ``fairly'' value their holdings after concern over U.S. subprime mortgage losses roiled credit markets.
I love it. Follow this: 1) A massive sustained increase in liquidity by central banks results in a massive global Credit Bubble. 2) The Credit Bubble starts to deflate and so the central banks come to the 'rescue' by injecting more liquidity.
Thursday, August 9, 2007
Credit Jitters Spread: ECB Comes to the Rescue.
Posted by Ben Bittrolff at 8:33 AM
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