Central banks come to Europe’s aid

[maple_leafs182]

The European Central Bank and a posse of other big official lenders are attempting to chase fear out of global financial markets, pledging to ensure Europe’s stressed banks have access to dollars.

Next month, the ECB will loan U.S. dollars for three months, a duration that is suitably long to provide certainty that banks will have access to enough of the world’s reserve currency to settle their accounts.

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Yes, prop up the big banks with more cheap money, economic growth here we come.

[eyeball]

(God damn it, why doesn't that work?) Edited September 21, 2011 by eyeball

[maple_leafs182]

(God damn it, why doesn't that work?)

[m edia]

[/media]

That is how you you should of typed it but without the space in media

[eyeball]

That is how I typed it.

http://www.youtube.c...h?v=gqsT4xnKZPg

See, it did or didn't do it again. I'm typing it right but when I post it the media tags disappear.

Edited September 17, 2011 by eyeball

[maple_leafs182]

That is how I typed it.

http://www.youtube.c...h?v=gqsT4xnKZPg

See, it did or didn't do it again. I'm typing it right but when I post it the media tags disappear.

Not sure then.

So, nobody has any problems with the banks being pumped full of cash at the expense of everyone else?

[maple_leafs182]

Cmon guys, this is important news, why is there no talk about this but something as stupid a mosque being by ground zero gets pages of discussion.

We keep trying to prop up failed institutions, we've been doing this for three years...how long will it take for us to realize this isn't working and is creating larger problems.

[Bonam]

Cmon guys, this is important news, why is there no talk about this but something as stupid a mosque being by ground zero gets pages of discussion.

We keep trying to prop up failed institutions, we've been doing this for three years...how long will it take for us to realize this isn't working and is creating larger problems.

I don't see it as particularly important news. Since the mini-crash of the markets last month, institutions worldwide have been taking these kinds of steps almost daily, whether its announcing more stimulus, promising continuation of low interest rates, negotiating to bail out countries with failing economies, etc. This is just one more small step in a series of dozens of such steps. In the short-medium term, the effect of all this is simply to keep the US dollar high and the costs of borrowing for the US low. The US is paying near historical lows for its debt despite the recent downgrade, since economic troubles in Europe have sent investors scrambling for US treasuries which are still seen as the safest bet. In fact, the US (and Canada) is making a killing off of borrowing money at an almost free 2% while lending money to weak European economies at far higher rates.

The reason Europe is scrambling into all these measures is mostly to keep the whole concept of the Euro and the EU alive.

[Sir Bandelot]

(God damn it, why doesn't that work?)

There is a mistake in the hyperlink. it shows "youtu.be"

It could be that if the hyperlink is invalid, it won't show it as media.

When I hit "Reply" to your post, the quote shows the media tags are still there. But the link is bad.

[GostHacked]

There is a mistake in the hyperlink. it shows "youtu.be"

It could be that if the hyperlink is invalid, it won't show it as media.

When I hit "Reply" to your post, the quote shows the media tags are still there. But the link is bad.

The youtu.be is pretty recent. After some of my last uploads, it shows that as a quick cut n paste link. It's not invalid perse, but invalid in the way this website works.

[Sir Bandelot]

The youtu.be is pretty recent. After some of my last uploads, it shows that as a quick cut n paste link. It's not invalid perse, but invalid in the way this website works.

Ok. Just checked on it, and it has to do with making it a convenient twitter/ facebook share. Presumebly this is the link you get if you click on 'Share this' on Youtube. So you're right, and this software doesn't 'get' it.

Better to just copy/paste the real URL from the navigation bar of your browser.

[maple_leafs182]

I don't see it as particularly important news.

Of course this is big news. The monetary policy of the world economy has been decided, this will have a huge amount of impact on our societies future.

Since the mini-crash of the markets last month, institutions worldwide have been taking these kinds of steps almost daily, whether its announcing more stimulus, promising continuation of low interest rates, negotiating to bail out countries with failing economies, etc. This is just one more small step in a series of dozens of such steps. In the short-medium term, the effect of all this is simply to keep the US dollar high and the costs of borrowing for the US low. The US is paying near historical lows for its debt despite the recent downgrade, since economic troubles in Europe have sent investors scrambling for US treasuries which are still seen as the safest bet.

The safest bet isn't US treasuries, if you haven't noticed, gold and silver have been sky rocketing these past few years. They have been safest or the smartest bet.

The reason Europe is scrambling into all these measures is mostly to keep the whole concept of the Euro and the EU alive.

They are doing it because the world is full of Keynesian that believe this how economic growth occurs. They think inflating will solve the problem of inflation. We have been wrong for the past 3 years, what makes people believe that it will work this time?

In fact, the US (and Canada) is making a killing off of borrowing money at an almost free 2% while lending money to weak European economies at far higher rates.

This doesn't solve any problems, encouraging people to go into more debt by lower interest payments will just create a bigger problem. The big problem is too much debt is the problem, encouraging more debt will just create a bigger problem later on.

[Bonam]

Of course this is big news. The monetary policy of the world economy has been decided, this will have a huge amount of impact on our societies future.

Nothing new has been decided. It's all a continuation of existing policies.

The safest bet isn't US treasuries, if you haven't noticed, gold and silver have been sky rocketing these past few years. They have been safest or the smartest bet.

Yeah... buying something at its all time high is a super safe bet! Not. A smart bet over the last couple years sure. But certainly not a safe bet now.

[maple_leafs182]

Nothing new has been decided. It's all a continuation of existing policies.

They are continuing a failed policy, this should be important to all of us.

Yeah... buying something at its all time high is a super safe bet! Not. A smart bet over the last couple years sure. But certainly not a safe bet now.

But the reason silver and gold have been going up is because they have been pumping so many dollars into the the economy. This announcement just means they will flood the market with more dollars, gold and silver will rise because of this.

[eyeball]

Ok. Just checked on it, and it has to do with making it a convenient twitter/ facebook share. Presumebly this is the link you get if you click on 'Share this' on Youtube. So you're right, and this software doesn't 'get' it.

Better to just copy/paste the real URL from the navigation bar of your browser.

Got it, thanks.

[Scotty]

Not sure then.

So, nobody has any problems with the banks being pumped full of cash at the expense of everyone else?

As I understand it, the plan is to let Greece not pay the money it owes the banks, then to pump the banks full of money so they don't go bankrupt as a result because then other banks which are owed money by THOSE banks will go bankrupt and on and on and on go the dominoes. It's more like European taxpayers making up for the money the Greek government owes because its own taxpayers haven't been paying taxes.

[eyeball]

As I understand it, the plan is to let Greece not pay the money it owes the banks,

So a jubilee in other words.

I still think a pot-latch is a better way to go. This way we might not have to throw all our responsibilities to the rich and powerful under the bus.

We keep trying to prop up failed institutions, we've been doing this for three years...how long will it take for us to realize this isn't working and is creating larger problems.

Oh c'mon, we've been cocking things up for at least three generations now.

[maple_leafs182]

As I understand it, the plan is to let Greece not pay the money it owes the banks, then to pump the banks full of money so they don't go bankrupt as a result because then other banks which are owed money by THOSE banks will go bankrupt and on and on and on go the dominoes. It's more like European taxpayers making up for the money the Greek government owes because its own taxpayers haven't been paying taxes.

Greece and those banks should go bankrupt. I don't understand why we bail banks out for making bad bets. Why did we turn our back on free market capitalism.

[eyeball]

Greece and those banks should go bankrupt. I don't understand why we bail banks out for making bad bets. Why did we turn our back on free market capitalism.

I don't think we have to completely turn our backs on it but there comes a time when we need to reset the economy. That's what things like potlatch's and jubilees do. Human societies have been using such peaceful means to do just that for thousands of years.

The trick is to 'bail out' everyone, all at once. Not all the time, just now and then which is why the potlatch and jubilee etc was a rare event and a celebration. These should not just be a redistribution of wealth but a demonstration of the faith the chiefs and their people's have that they can generate that much wealth and more in the next cycle.

Imagine the effect on the economy that such a blossoming of optimism from billions of human would have. I suppose there'd still be a few old sourpuss' chiefs who hate getting with the program but I guess you can't please everybody. That would be just too Utopian.

[jbg]

Not sure then.

So, nobody has any problems with the banks being pumped full of cash at the expense of everyone else?

I ain't happy about that. Why didn't the banks look skeptically at what the Greek government was going to do with the money? I bet a lot of it is in Swiss bank accounts.

[maple_leafs182]

I don't think we have to completely turn our backs on it but there comes a time when we need to reset the economy. That's what things like potlatch's and jubilees do. Human societies have been using such peaceful means to do just that for thousands of years.

The trick is to 'bail out' everyone, all at once. Not all the time, just now and then which is why the potlatch and jubilee etc was a rare event and a celebration. These should not just be a redistribution of wealth but a demonstration of the faith the chiefs and their people's have that they can generate that much wealth and more in the next cycle.

Imagine the effect on the economy that such a blossoming of optimism from billions of human would have. I suppose there'd still be a few old sourpuss' chiefs who hate getting with the program but I guess you can't please everybody. That would be just too Utopian.

Letting all the banks, corporations and governments fail would let us start over new. We keep propping up failed institutions which is preventing us from starting over new.

[Scotty]

Greece and those banks should go bankrupt. I don't understand why we bail banks out for making bad bets. Why did we turn our back on free market capitalism.

The problem is the interrelationship of banking and financial institutions. I don't mind if a few banks go under. And the Greeks deserve to go bankrupt. What I don't want is banks all over Europe collapsing, runs on other banks, stock markets crashing and the collapse of the financial system.

[maple_leafs182]

The problem is the interrelationship of banking and financial institutions. I don't mind if a few banks go under. And the Greeks deserve to go bankrupt. What I don't want is banks all over Europe collapsing, runs on other banks, stock markets crashing and the collapse of the financial system.

As shitty as this might sound, that is the healthiest thing that could happen for our economy. Just shifting around debt from one institution to another won't solve the problem. We need all this bad debt to be liquidated.

[jbg]

Deleted. Actual post below

Edited October 3, 2011 by jbg

[jbg]

As shitty as this might sound, that is the healthiest thing that could happen for our economy. Just shifting around debt from one institution to another won't solve the problem. We need all this bad debt to be liquidated.

Theoretically I'm all for that. But letting the CreditAnstalt fail (link to article about failure) during the Spring of 1931 turned a nasty recession into the Great Depression. (edited to fix spelling and year of collapse).

[GostHacked]

The problem is the interrelationship of banking and financial institutions. I don't mind if a few banks go under. And the Greeks deserve to go bankrupt. What I don't want is banks all over Europe collapsing, runs on other banks, stock markets crashing and the collapse of the financial system.

The house of cards needs to come down completely before we can rebuild.