Central Banks Ready To Provide Liquidity As Required

Discussion in 'Stock Market' started by presence06, Sep 9, 2011.

  1. presence06
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    presence06 Rookie

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    Here Comes The Non-Boring Weekend: G7 Says "Central Banks Ready To Provide Liquidity As Required" | ZeroHedge
     
  2. JimBowie1958
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    JimBowie1958 Old Fogey

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    Euro Banks stuck between a rock and hard place? More like between a morter and pestle.

    Caught this from Zerohedge:

    S&P Reminds Europe Of Its Toxic Catch 22, Warns EFSF Expansion Will Lead To More Sovereign Downgrades, Rendering EFSF Itself Useless

    Finally, little by little, the fog of toddler-like euphoria over any and every most recent European bailout plan is starting to lift, this time with the S&P finally speaking up and reminding everyone of what they already know: namely that an expansion of that now-daily deux ex machina, the EFSF, will "potentially trigger credit rating downgrades in the region, a top Standard & Poor's official warned. David Beers, the head of S&P's sovereign rating group, said it is still too soon to know how European policymakers will boost the European Financial Stability Facility, how effective that will be and its possible credit implications....But he said the various alternatives could have "potential credit implications in different ways," including for leading euro zone countries such as France and Germany." Get that? As Zero Hedge said back on July 21, the European bailout Catch 22 is now once again front and center, namely that any expansion in the EFSF will lead to a downgrade in one of the two Eurocore countries, France or Germany, and should France get cut from AAA (which it will), the entire burden of footing the European bailout bill will fall on Germany. And if Germany is also downgraded to AA, kiss your SPV CDO goodbye, and with it Europe. Which means that while we will hear many more threats by both and against S&P, more posturing that the EFSF will be enhanced to tens if not hundreds of trillions with virtually unlimited leverage, however idiotic those may be, the end result is just one: whether or not Germany risks a full blown government collapse by instituting the only thing that has a chance of containing the crisis - EuroBonds....
     
  3. Cammmpbell
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    Cammmpbell Senior Member

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    You know...our markets must have all the European uncertainty priced in. It's been going on too long. I started a dollar cost averaging plan when the DOW was at 12,200. So far every Friday I've been getting a bargain...I think...I guess...I hope LOL
     
  4. Jos
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    Jos BANNED

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    Used to be, Money was backed by Gold and Silver, now it is backed by confidence, confidence that others will accept it for payment of goods. that "confidence" evaporates as they print more and more paper "Money"
     
  5. Cammmpbell
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    Cammmpbell Senior Member

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    Yeah...Richard NIxon(the criminal) ended the draft and took us off the gold standard. When he did that a $20 bill would buy a $20 gold piece. Now it takes about 80-90 $20 bills to buy a $20 gold piece.
     
  6. JimBowie1958
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    JimBowie1958 Old Fogey

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    You can tell the markets do not have the full reality of a European bank collapse priced in, other wise every rumor of what the ECB does wouldnt affect our markets.

    The real impact will come from the overwhelming destruction of available credit as M3 wealth disappears. This will stop business expansion/starts and will kick existing businesses into a downward spiral of layoffs causing a contraction in the consumer market which in turn causes more lay offs, etc.
     

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