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Re: What does this mean?
"...the new Facility gives the Bank additional flexibility to offer sterling liquidity in an auction format against the widest range of collateral..."Originally posted by Mega View Post
It means the BoE is getting ready to give short term [30 day] loans to the banks in exchange for just about any old crap they might be holding on their books... -
Re: What does this mean?
Yep. This, along with the lowering of rates for Federal Reserve intervention in the Eurozone, means that people are bracing for a big liquidity freeze, likely expected to begin if the European summit Thurs-Fri. disappoints. The Anglo-Saxon paradigm says that anything short of shock-and-awe will be a dismal failure. The Teutonic perspective is that shock-and-awe intervention is the problem, not the solution, and should happen as late as possible, if at all. I expect the next weeks and months to make it clear who the markets agree with.Originally posted by GRG55 View Post
So far, bond spreads have been slowly receding away from panic again.
Italy/Germany
France/Germany
Spain/Germany
We live in interesting times.Comment
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Re: What does this mean?
Thanks, I see.............sort of what the FED has been doing?
MikeComment
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