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Topic: $300 Billion in 48 hours
| Author | Message |
| UGoGirl | Posted – 8/12/2007 10:14:27 AM | show profile I wish I understood the incredibly complex global financial system better to have a better sense of what this $300 billion cash injection really means... but it seems a pretty urgent reaction from government banks. And where's all this cash coming from? Is this my dime? **** Central banks around the globe pumped billions of dollars into banking systems on Friday in a concerted effort to beat back a widening credit crisis, and they pledged to do more if needed. In all, central banks in Europe, Asia and North America have pumped out more than $300 billion (148 billion pounds) over 48 hours in an effort to keep money flowing through the arteries of the global financial system, hoping to prevent a credit market seizure that could imperil economies. In a rare statement of reassurance that underlined the seriousness with which it views the current bout of market stress, the U.S. Federal Reserve said it would provide cash as needed to ensure markets functioned smoothly. The statement was the first of its kind since September 11, 2001, when terror attacks brought the U.S. financial system to a virtual halt. "Ben Bernanke must feel like the captain of the Titanic," said Sherry Cooper, chief economist at BMO Capital Markets in Toronto, referring to the Fed chairman. "He knows the ship has hit an iceberg but, through the dark and fog, can't see how bad the damage is." ..."There's a variety of scenarios you can envision, all the way from it being a relatively contained phenomenon to something which has much broader implications that cause the world to collapse like a deck of cards," he said. Reuters |
| betsy balega | Posted – 8/12/2007 11:08:44 AM | show profile Understanding the $300 Billion influx U Girl, I think it's pretty easy to understand. It's a temporary measure. Just like income tax was only going to be "temporary." Yeah, right. But all jokes aside. It was done as a preventative measure. Betsy Balega Prodicer/Host Tuning in with Betsy http://www.blogtalkradio.com/betsy Live from New York City via Toronto |
| Printingman | Posted – 8/12/2007 1:11:19 PM | show profile | email poster Het Betty. What's a Prodicer or is that a typo |
| UGoGirl | Posted – 8/12/2007 5:31:24 PM | show profile But Betsy (or anyone else), what does it mean? Does it mean the federal government is coming to the rescue, serving as lender of last resort? Is this another type of bailout for corrupt corporate America? Who is taking on this risk? Me, the American tax payer? And is running the printing presses at this rate also very risky? I don't think it's simple or the implications easily understood, and I think the story has only just begun. |
| keltoi | Posted – 8/12/2007 11:49:34 PM | show profile Didn't notice the US government running to the Mint printing presses as the middle class was struggling to keep their homes. But wealthy investors who went for the high-reward, high-risk markets are in danger of losing money? WHOA! PRINT those greenbacks ASAP! |
| ZeldaMedia | Posted – 8/14/2007 3:16:11 PM | show profile Rich Man's Game You know it really infuriates me that most average Americans aren't alert to what is happening with our economy. Especially, all you need to do is apply the math you learned in elementary school to see that we are headed for a DEPRESSION, not a recession, not a slow down, not a bear market, not a bubble burst, but a depression. The math: Approx. 60 billion US dollars for the "correction" +1 trillion spent by the end of War in Iraq +XXXX billions that will be spent to bail out the banks and mortgage companies stuck with property they can't unload +XXXX dollars Americans filing for bankruptcy because they can't pay their credit card bills etc. +XXX dollars airlines received when filed for bankruptcy +(please add what you feel is missing) __________________________ =?????? I can't tell how much this will end up costing but I can tell you WHO will end up paying: The "middle class". But first let's change that name to something that accurately captures our role like, the "slave class". We work and toil to pay taxes that end up covering the uber wealthy class' ass, their "oops there is a credit crunch" now we need a correction. I hate the phrase "market correction". Does it really correct anything in the long run or does it just put off the inevitable? BTW, where's my ?market correction? when I can't pay my bills because I am over educated and underemployed? Most of us are not poor or wealthy enough to be eligible to receive government assistance. Other people reason that we, the ?slave class? have to cover the rich person's ass because they are the ones who create jobs = ?the trickle down theory?. Well, the only thing that has trickled down and will trickle down to us is the bill. UgoGirl, I am so glad you post on these issues because there level of denial many people engage in that is truly frightening. It?s like being in The Twilight Zone or in a ?Stepford Wives? community. That?s what we should call it the ?Stepford Wives Economy?. |
| UGoGirl | Posted – 8/14/2007 4:16:55 PM | show profile Go Zelda Go!! I guess one thing I'd add to it is dwindling natural resources (oil, natural gas, etc.), which is going to make everything a lot more expensive. I also feel like I'm in the twilight zone sometimes. I mean if I can see where we're heading, why can't everyone else? Is there some alternate reality going on? |
