Howard Lutnick head of Cantor/Fizgerald is giving a guaranteed call on what will come out of the G7 meeting.
First he states, unless they get to crash the Libor Rates, this market has NO bottom, it will just trend down and down and down, and FAST, until Libor Rates come down like a stone , a thrown into a lake stone falling.
He says the G7 will rule to have of the world powers centers to massively give cash to banks and at LOW LOW LOW rates of interest and cancel out the Libor Rate.
He says this will be announced this Sunday or Next Sunday.
The option, to Lutnick, there is no option, for as long as banks refuse to lend to each other this market just plain has NO bottom limit.
His confidence that this will be done is based on "There is No Alternative".
Basicically he is saying this is the Financial World's Armageddon, and the heart of this relentess disaster are the Ted Spreads---the credit market remains totally FROZEN, and that will NOT unfreeze of themselves, thus the crash will just keep crashing.
When asked, how Fed can take on more and more debt, he world would keep buying buying buyin T-Bonds to support as the U.S. basically, as i interpret, will offer all the assets of the U.S. as collateral. We have reached the UFB!
But do i think Lutnick is right, is this the next step?
i will let others answer that. Max |
