Where's the Coordinated Central Bank Rate Cuts

Discussion in 'Economics' started by TT1, Sep 17, 2008.

  1. TT1


    Don't ya think that Benanke should be calling all his Central
    Bank Buddies over in the ECB, Bank of Japan, China, and else where to coordinated a Central Bank Rate Cut to save us from a World Wide Financial Implosion???

    Here was a part of the last FOMC statement issued yesterday:

    "The downside risks to growth and the upside risks to inflation are both of significant concern to the Committee. The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability."

    Benanke is a freakin idiot!!! Him and his FOMC buddies are concerned about upside risk to inflation??? Where have they been for the past 2 months?? Oil and most commodities have collapse, dollar has been stronger, yet they don't see the massive financial destruction going on around the World???

    DEFLATION is the only concern now!!!

    Maybe we need to get Alan Greenspan back in the driver seat at the FED, atleast he's been through several of these Financial disasters before and seems to know what to do!!!

    However, Greenspan(Easy Money), Congress(Oversite) , SEC(Regulatory) and others are responsible for this current financial mess.

    WE need a .50 basis pt cut NOW!!!
  2. Aint gonna happen. The Germans still know about hyperinflation.
  3. TT1


    Fed, ECB pump billions into money markets
    Thursday September 18, 7:58 am ET
    By Matt Moore, AP Business Writer
    Federal Reserve, other central banks to pump billions more dollars into money markets

    FRANKFURT, Germany (AP) -- The world's major central banks banded together on Thursday to inject as much as $180 billion into money markets in a bid to stave off the growing global financial crisis.
    The Federal Reserve joined with the European Central Bank, the Bank of England, the Bank of Japan and the Swiss National Bank to pump more short-term dollar liquidity into the financial system.


    Credit markets have tightened since Monday after the weekend collapse of investment house Lehman Brothers Holdings Inc., and central banks already provided billions Monday and Tuesday in hopes of turning the tide and to keep fearful banks from hoarding cash. The hope is that that would help stabilize world financial markerts which have been reeling.

    In its statement, the Fed said it had authorized a $180 billion expansion of swap lines, or reciprocal currency arrangements, with the other central banks, including amounts up to $110 billion by the ECB and up to $27 billion by the Swiss National Bank.

    The Fed also said new swap facilities had been authorized with the Bank of Japan for as much as $60 billion; $40 billion for the Bank of England and $10 billion for the Bank of Canada. The Bank of Canada said it was "not neccesary" to draw on the swap facility at the moment.

    "These measures, together with other actions taken in the last few days by individual central banks, are designed to improve the liquidity conditions in global financial markets. The central banks continue to work together closely and will take appropriate steps to address the ongoing pressures," the Fed said in a statement on its Web site.

    Michael Schubert, analyst with Commerzbank AG, said the move was done in part to help banks that may not have direct access to the Fed.

    "Firstly, some euro-area banks have no direct access to the Fed. Secondly, euro-area auctions for (U.S. dollars) provide better timing for euro-area banks," he said.

    The ECB, which oversees the 15-nation euro zone, said it plans to provide as much as $40 billion to cash-starved banks, money that is being provided to it by the Federal Reserve swap line. The one-day operation opened for bids Thursday morning. The bank is also going to increase a 28-day tender operation the to $25 billion and an 84-day tender to $15 billion.

    "Overall, the dollar funding operations conducted by the Eurosystem could reach an outstanding amount of $110 billion," the ECB said in a statement.

    The Bank of England said it would inject $40 billion as part of the coordinated effort. So far, the London-based bank has provided a total of 25 billion pounds ($44.8 billion) to markets since Monday.

    In Tokyo, the Bank of Japan said Thursday it has also concluded a U.S. dollar swap agreement worth $60 billion with the Federal Reserve to supply U.S. dollar funds to market participants in Japan. "The bank will continue to strive to maintain market stability through money market operations," it said in a statement.

    In Washington, the Fed has pumped $70 billion into the nation's financial system to help ease credit stresses. In emergency sessions over the weekend, the Fed expanded its loan programs to Wall Street firms, part of an ongoing effort to get credit flowing more freely. On Wednesday, the U.S. Treasury Department said that in an effort to help the Fed deal with unprecedented borrowing needs resulting from the current credit crisis, it will begin auctioning debt for the central bank.
  4. Unleaded gas is back near $ 4.00 food prices have not fallen at all.

    The printing presses are running 24 hours a day, that mean more inflation.
  5. You mean Volker, right?

    GreenScam was a MAJOR, MAJOR facilitator of this mess. :mad:

    BTW... the only reason we even HAVE "financial disasters" is because the Fed creates them.
  6. Its not about more money, its about trust. Trust has been shot. Think about all the money that came in to help FRE,FNM,BCS. All wiped out by Paulson.

    Think about all the leaders telling everyone BCS,FRE,FNM,LEH,AIG all had plenty of capital.

    No I'm afraid trust has been lost for now.
  7. moarla


    Greenspan was the big idiot to bring you USA in this situation. Bring hin in jail