First rate cuts come in …
Today morning, Australia (100bps) and India (50bps) cut their rates, Japan stuck to its already low rates.
So hopes rise to see some more action this week.
Pimco’s Bill Gross recommends that the FED should cut rates down to just 1 % in October.
Tags: rates
Oktober 7th, 2008 at 06:17
Problem isn´t cebtral bank rates. It´s private sector´s rates. Spreads yesterday climbed to above 1300 bp. That is 17% yield for commercial paper. MLPs imploded giving 20%+ yields for secure pipeline, tank, P&D Biz.
They have to unlock the real economy. 2 weeks more and the private dominos will start falling and then we will really have 1929. Just simple as that. Don´t k now why these suckers didn´t open the scapegoats earlier. Now the beast is out of the box.
Oktober 7th, 2008 at 07:06
This is, why the FED took over the money market
Oktober 7th, 2008 at 14:03
where’s mah crash?
Oktober 7th, 2008 at 22:05
i agree OFFICIAL centralbank rates are NOT the problem …
todays EZB tender was closed at 4,76% = 0,51% above the official rate…
EZB should move towards a tender WITHOUT AUCTION but below the official rate… think they waited too long…
BoA mentioned depreciatons for CONSUMER credits, that is the next point… who on earth is applying for a car credit right now? Yes, nobody…
But can I pay my current credit back? Yes, I can … at least for some time … but you US mates? Can you? DCX finances about 75% of its own production… do you see the business model?… it is doomed …
Since the filing of Lehman, the MONEY MARKET is dead… it took 1 week for HBOS to fail, 2 weeks for HRE (although it has ONLY 5% of its PASSIVA to finance very short term, it took 3 weeks for RBS, TSB to fail … it takes how long DB to fail? There is an IMMINENT NEED to QUASI NATIONALIZE the money market … that is the only way … together with CLEARING FACILITIES for Repos and its brothers and sisters and CDS and CPs… and all the other fancy OTC stuff … that brought all the BONI about …
FED started to take over the CP Market because of the threats for its disfunctioning for the REAL WOLRD… if NO CLEARING HOUSE can take over the CDS market… FED will take this over the next days…
CHARTS, oh dear, I was wrong! I could not see the crash that is going on… I look at my MINUTE CHARTS and they look like the HOURLY CHARTS in normal times…
YES, we should see a supercharged rally, but where …. it is still gloomy tonight… the US is down again… I mean, it is not a crash but it is 5 % each day… there is panic but prices behave strange… there is no relief, that is strange…
We should see upward moves like the VOLKSWAGEN one of today… but it is just not happening …
it is not 1929 but 2008 ….
((