Did y'all hear what David Dodge has been saying in London, England (the same day there is a bank run there)?
ECB cash infusions may not succeed: Dodge
September 14, 2007 at 7:06 AM EDT
ZURICH — The European Central Bank's efforts to restore confidence to credit markets by pumping in liquidity are unlikely to succeed, Bank of Canada Governor David Dodge was quoted as saying on Friday.
“I'm not sure practically, whether it would do anything,”
Interest rates have risen well above overnight money market rates as banks have hoarded cash as a precaution in case they are forced to bail out off-balance-sheet debt vehicles they helped to set up during an era of abundant cheap money.
“If I thought that somehow there was a magic wand and if we did that for three or four days, then all of a sudden the markets would clear and life would be beautiful ... There is no principle that says (this) is a bad thing to do, but I can't believe it will do the job,”.
Mr. Dodge also said it was not the duty of central bankers to “bail out people who have made losses.”
Dodge says he should have driven rates up 'harder'
Reuters, Globe and Mail Staff
September 14, 2007 at 5:26 PM EDT
Bank of Canada Governor David Dodge says he should have driven up interest rates “harder” before the current global credit squeeze to tighten borrowing conditions, according to an interview published in The Economist magazine.
In a mea culpa to financial markets, he said the central bank may have played a role in fomenting excesses in credit markets prior to the disruption stemming from rising defaults on payments by U.S. subprime mortgage holders.
I never thought that those cash infusions would work, but merely give the big players the chance to get their money out. The shite hits the fan, there is a big bally-hoo, the CBs use a whole bunch of our money to drag things up, the big money pulls out, and the greedy sucker class rushes back in to get slaughtered again. Or something like that. I have also been hoping for significantly higher interest rates for the last 3 years - to slow this train down. I am fairly ignorant of economic intricacies and ephemera, but if I have seen this coming (and many of you have too), how come it took all these "experts" so long to see it? Wilful ignorance?
Things have reached an excess in every aspect of Western civilization and exploitation, and there is a cleanse coming. Recession talk in the MSM, etc. means depression. Things are much worse than is let on. We are living in interesting times, and as I have admonished before, gird your loins.
I can't believe that people are still buying real estate at this point. It is going to crash, and crash very hard - along with everything else. These banking/loan shenanigans are the trigger - the "outside event" that so many of the RE boosters have been saying we would need to turn the RE market. You know - the one that will never happen.
I have a little theory on what is really causing all of this madness. It is very "out there", but I will present it in the coming days.