HowardWe Wish You a Merry Bank Crash
Harlem t-shirt from the Tee Shirt Queen
We Wish you a merry bankcrash;
we wish you a merry bankcrash;
we wish you a merry bankcrash;
The hyperinflation, is way beyond belief;
A blow out for Christmas, and a crash this New Year;
On eBay:
"I Love Harlem" Woman's Pink-White Tracksuit
I Love Harlem t-shirt
The European Central Bank seems to really have the presses going. There are promises of $500 billion dollars, for the banks to play with this Xmas. Will this solve anything? Of course not.
The European Central Bank (ECB) announced today the latest unprecedented move, probably destined to be unprecedented until tomorrow. As part of the deal struck by five central banks last week, unlimited amounts of short term money are being made available to any bank, at the cheapest possible rate of 4.21%. This is bare 21 points above the European official interest rate, and way below the interbanking rate which has recently been around 4.9%. The Financial Times reported that the ECB expected a demand for the two-week money of Euro 260.7 billions, but by mid-afternoon they were reporting that Euro 348.6 billion - $502 billion - had been grabbed up.
This is the largest single money injection by the ECB in history. Last week's announcement of auctions for about $100 billion had been judged "too little" by the financial markets.
Parallel to the ECB's idiocy, today, the Fed will start the first of a series of "universal" money auctions, i.e. where all banks can participate and borrow anonymously, for an amount of $20 billion. This is also the first auction in which the Fed will really implement the decision (announced last August) of accepting subprime and CDO assets as collateral, despite the fact that no one knows what they are worth, if anything at all.
The real issue is that it is not a liquidity crisis, it is a solvency crisis. The system needs a bankruptcy reorganization.
On the fun side, I am now selling tee shirts with my partner at
Tee Shirt Queen.
Very pretty for Christmas and New Year's.
I Love Harlem NY.
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The problem is that it is at the point that No one can bail these people out. It's that (like 1933) FDR moment. Listen to the geezer.