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2008-09-17 Home Front Economy

Financial Times: Panic grips credit markets

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Posted by 3dc 2008-09-17 17:32|| || Front Page|| [4 views ] Top

#1 Damn, I should have bought more gold.

Posted by Tarzan Angeter7567 2008-09-17 18:15|| 2008-09-17 18:15|| Front Page Top

#2 This morning the Treasury sold $40 billion in 35 day notes, for an interest rate of 0.300%. This was not announced much ahead of time.
"Panic grips credit markets" is an exaggeration. Read up on the Panics of 1837, 1873, 1893. Those were Panics, meaning no credit available to anyone for anything, with cash shortages, otherwise viable businesses shutting down for lack of credit, and 30% unemployment. We're not anywhere close to that.

Posted by Anguper Hupomosing9418 2008-09-17 19:29|| 2008-09-17 19:29|| Front Page Top

#3 LIBOR going to 6 yesterday was a big deal. What this means is that banks are not confident that they will be paid back by other banks when they lend them money for one single day. I was involved in this working for a net Fed Funds lender when Continental Illinois and First Pennsylvania collapsed in the mid '70's There was so much going on in Nam and Watergate that most people didn't notice. But there was a huge melt down then as well. Just not as many people were as wealthy and the wealth threatened was not their own home equity.

Any way, they call them panics because the fear is paralyzing. Just below combat. Hard to think of anything else close except those seconds before a life threatening experience like an automobile crash. It makes people do strange things.

Posted by Nimble Spemble 2008-09-17 19:48|| 2008-09-17 19:48|| Front Page Top

#4 Damn I knew I should have bought more likker.

Posted by .5MT 2008-09-17 19:49|| www.cybernations.net]">[www.cybernations.net] 2008-09-17 19:49|| Front Page Top

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