The ECB Is No Longer Able To Inject Liquidity

[loken]

30/09 - The Truth Will Set You Free

We’ve Become a Banana Republic With Nukes.

30/09 - The ECB Is No Longer Able To Inject Liquidity

The ECB is no longer able to inject liquidity because the money is just coming back to them again. This is extremely serious. If monetary policy is no longer working, there is a risk that the whole system will blow up in days...

http://cromalternativemoney.org/news.html

[krakknisse]

Good find, interesting story. This link is better. It links to yesterday's Daily Telegraph story by Ambrose Evans-Pritchard:

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3104666/Banking-crash-hits-Europe-as-ECB-loses-traction.html

Maybe you could update your link.

[D-Mack]

Good find, interesting story. This link is better. It links to yesterday's Daily Telegraph story by Ambrose Evans-Pritchard:

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3104666/Banking-crash-hits-Europe-as-ECB-loses-traction.html

Maybe you could update your link.

Interesting


Analysts say German finance minister Peer Steinbrueck may have spoken too soon when he crowed last week that the US would lose its status as a superpower as a result of this crisis. He told Der Spiegel yesterday that we are "all staring into the abyss".

[babbittd]

http://www.spiegel.de/international/business/0,1518,581201,00.html



Steinbrück: We are experiencing the most severe financial crisis in decades, although one should be careful about historic comparisons with 1929. One thing is clear: After this crisis, the world will no longer be the same. The financial architecture will change globally.

SPIEGEL: Could you be more specific, please.

Steinbrück: There will be shifts in terms of the importance and status of New York and London as the two main financial centers. State-owned banks and funds, as well as commercial banks from Europe, China, Russia and the Arab world will close the gaps, creating new centers of power in the financial world.

SPIEGEL: In other words, we are experiencing the beginning of a tectonic shift…

Steinbrück:... but not one that is abrupt and jarring. It will be an evolutionary process that will take several years.

[..]

Steinbrück: In the case of Lehman, the US government wanted to send a signal to the market that they are not prepared to offer a bailout under any circumstances. In the case of AIG, we had direct talks at the G7 level and implored them to stabilize the situation. An AIG bankruptcy would have triggered shock waves around the world. We were all staring into the abyss at that point.

[phirang]

The European banks will suffer, but please, please read the ECB FSR on securitization in the EMU: they have a cipher of the securitization that the US had! Yes, banks in the EMU will fail, but not nearly to the extent that they will in the US!

[zoog]

http://www.spiegel.de/international/business/0,1518,581201,00.html


SPIEGEL: The German government is unwilling to participate in America's $700 billion bailout package. Is this your final word?

Steinbrück: I see neither the need for nor the possibility of taking on the responsibility for American banks.Hm, sounds like at least one European country that doesn't want to help patch holes in our sinking ship.

[GRG55]

Hm, sounds like at least one European country that doesn't want to help patch holes in our sinking ship.


Don't count on it. :)

This statement...


SPIEGEL: The German government is unwilling to participate in America's $700 billion bailout package. Is this your final word?

Steinbrück: I see neither the need for nor the possibility of taking on the responsibility for American banks.
...and this statement...


Steinbrück: In the case of Lehman, the US government wanted to send a signal to the market that they are not prepared to offer a bailout under any circumstances. In the case of AIG, we had direct talks at the G7 level and implored them to stabilize the situation. An AIG bankruptcy would have triggered shock waves around the world. We were all staring into the abyss at that point.
...appear diametrically opposed.

How can you "implore" someone to do something that is in your [G7] interests, at the same time you say you won't help?

Regardless of where in the world one lives we are all American taxpayers now...:p

[jimmygu3]

Regardless of where in the world one lives we are all American taxpayers now...:p

To a large extent you're right. You could substitute "financiers" or "deficit supporters" for "taxpayers" in most cases. The difference for American citizens is that we can't just cut our losses and walk away. We're stuck in the dollar roach motel.

In another way, even limiting it to taxpayers and foreign investors is too narrow. Certainly many who pay little or no income tax will be hurt the most by dollar-depreciation-based inflation.

Jimmy