All injecting money now.
BANKS HAVE STOPPED LENDING TO EACH OTHER!
As for the Federal Reserve, they might have ran out of money. The US Treasury is raising money for it.
Treasury to Sell Bills to Bolster Fed Balance Sheet
Sept. 17 (Bloomberg) -- The Treasury is selling $100 billion in short-term debt to enable the Federal Reserve to expand its balance sheet, a sign of the strains created by the biggest extension of central-bank credit to financial companies since the Great Depression.
The program started today with a $40 billion auction of 35- day bills, a day after the government agreed to take over American International Group Inc., the Treasury said in a statement in Washington. Another $60 billion will be sold tomorrow, it said.
The proceeds will ``provide cash for use'' by the Fed as it seeks to boost liquidity in credit markets struggling from $515 billion in writedowns and losses since the start of last year. (more)
Amazing!
Now the question remains, will can Morgan Stanley survive?
Now the question remains, will can Morgan Stanley survive?
Not according to the CEO of Morgan Stanley John Mack (as reported by NY Times)...
“We need a merger partner or we’re not going to make it,” Mr. Mack told Mr. Pandit according to two people briefed on the talks. Mr. Pandit, a former senior investment banker at Morgan Stanley, said Citigroup was not interested.
"BANKS HAVE STOPPED LENDING TO EACH OTHER!"
ReplyDeleteDon't understand. Please explain.
但各央行會不會沽金套現？
ReplyDelete1. "BANKS HAVE STOPPED LENDING TO EACH OTHER!"
ReplyDeletemeans banks do not lend to each other anymore. What happens is Central bank is now the middle man.
You have spare cash, you lend to central bank, and then the central bank lends to the other banks.
As for 但各央行會不會沽金套現？ they have no left in their vaults.
"BANKS HAVE STOPPED LENDING TO EACH OTHER!"
ReplyDeleteBanks simply don't trust each other being afloat the next day.