Lehman

[Kidlicious]

I know this is your favorite troll, but you are going to make DanS bust a gasket by quoting me in his econ thread.

Anyway, there was always plenty of tp in communist China. Your prediction that a communist USA would not have tp is ridiculous.

[Imran Siddiqui]

That's because "communist" China went capitalist (well somewhat) .

[Kidlicious]

There was ALWAYS tp in China.

[Asher]

http://www.thestar.com/Business/article/501378

Bank of Canada joins others to support money markets

Global banks set to inject up to a quarter of a trillion dollars into financial institutions
Sep 18, 2008 07:34 AM
Be the first to comment on this article...
THE CANADIAN PRESS

OTTAWA–The Bank of Canada is joining the U.S. Federal Reserve and central banks in Europe and Japan to shovel up to a quarter of a trillion dollars into global money markets as they strive to restore confidence.

In a statement issued at 3 a.m. Ottawa time, the Bank of Canada said it is acting with the Bank of England, the European Central Bank, the Federal Reserve, the Bank of Japan and the Swiss National Bank with "co-ordinated measures designed to address the continued elevated pressures in U.S.-dollar short-term funding markets."

In particular, the Bank of Canada and the Federal Reserve have established a US$10-billion reciprocal currency arrangement to provide U.S.-dollar liquidity in Canada.

This could be drawn on by the Bank of Canada to assist any Canadian financial institutions that run short of ready cash.

"The bank judges that it is not necessary for it to draw on this swap facility at this time, but that it is prudent to have the agreement in place," the statement said.

"The Bank of Canada continues to closely monitor global market developments and remains committed to providing liquidity as required to support the stability of the Canadian financial system and the functioning of financial markets."

The central banks "continue to work together closely and will take appropriate steps to address the ongoing pressures," it added, echoing statements by the other central banks.

Credit market pressured have intensified since Monday after the weekend collapse of Lehman Brothers Holdings Inc., and central banks have already injected billions of dollars this week in an effort to keep banks from hoarding cash.

The Fed said it has authorized swap lines similar to the Canadian arrangement totalling US$247 billion: $110 billion with the ECB, $60 billion with the Bank of Japan, $40 billion with the Bank of England and US$27 million with the Swiss National Bank.

This represents a $180-billion expansion of the swap facilities the Fed previously had in place with the other central banks.

The ECB, which oversees monetary policy in the 15 countries using the euro, said in a statement similar to that of the Bank of Canada that the "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 Federal Reserve has pumped US$70 billion into the American financial system, and the U.S. Treasury Department said Wednesday that to help the Fed cope with unprecedented borrowing needs it will begin auctioning debt for the central bank.

The European Central Bank said it was making as much as $40 billion available immediately to cash-starved banks, and "overall, the dollar funding operations conducted by the Eurosystem could reach an outstanding amount of $110 billion."

[Asher]

And LEH was suspended on the NYSE:

http://www.nyse.com/press/1221647871334.html

[Alinestra Covelia]

Originally posted by Kidicious
Anyway, there was always plenty of tp in communist China. Your prediction that a communist USA would not have tp is ridiculous.

Exactly. Once paper money goes out of style they can use that to provide tp for your bunghole.

[snoopy369]

Plenty of TP, yes. Plenty of food, no.

[BeBMan]

Hadn't time to read the whole threadi. Did you guys discuss the possibility that the entire mess was created by Obama to bring him in a better position in the race for the white house again ?

[DanS]

Nah, we've generally stayed away from the politics in this thread. There was a political discussion some pages back, but, well it sort of petered out...

[Victor Galis]

Originally posted by Kidicious


If libertarians were in control we would be in a full blown world depression at this point.

You mean if libertarians were in control, we'd be reduced to a barter economy by this point.

[Kidlicious]

Originally posted by DanS
Nah, we've generally stayed away from the politics in this thread.

[Agathon]

I thought the Dow would rally, but it's negative now.

edit: was for about 10 seconds. Now up again. Stupid widget.

Oops... up again and down again. It's like Monica Lewinsky.

If it goes below 10000, that will be an important psychological barrier.

[DanS]

Congrats to Buffett for picking up Constellation Energy at only 2/3rd book value and 0.25x sales.

[DanS]

The stock market hasn't crashed today, but the credit markets still appear to be seized up -- indeed the crunch is being exacerbated with the spread of 3-month LIBOR at 4.8% over t-bills versus 3% yesterday. The 3-month t-bill still is only earning 0.01%.

Where is all the Fed money going? Not gov't bonds. Not oil. Not gold too much.

[Kuciwalker]

Lehman had a booth at the job fair today