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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: sea_urchin who wrote (25702)	8/11/2007 8:09:06 PM
From: Jamey	Read Replies (1) \| Respond to of 81101

"Don't forget the bully beef -- and the sense of humor!" Musn't forget that! The great age of the digital 0 and 1. No money transfers-just digits! $300,000,000,0000 transfer!! The greatest con game in the world. Jim

To: sea_urchin who wrote (25702)	8/12/2007 1:59:21 PM
From: sea_urchin	Respond to of 81101

> If they can print $300bn or a trillion, does it make a difference? sg.biz.yahoo.com >>Bank of Japan injects one trillion yen into money markets Japan's central bank injected one trillion yen (8.5 billion dollars) into the money markets Friday to try to ease a sharp liquidity squeeze caused by problems in the US subprime mortgage sector. The injection followed the European Central Bank's move Thursday to pump a record 94.8 billion euros (130.2 billion dollars) into the eurozone banking market as lenders struggled for funds in a flight to safety from the growing defaults in the US home loans market. The US Federal Reserve made a more modest 24 billion dollars available to US commercial banks on Thursday. The BoJ's injection is up from 400 billion yen the bank pumped into the financial system on Thursday and the highest since it offered one trillion yen on June 29. A BoJ spokesman said the central bank had "judged it would be better to offer (ample) funds." "They needed to stabilise money market interest rates," said Hiromichi Shirakawa, chief economist at Credit Suisse in Tokyo. "This increase in interest rates globally is reflecting the increasing credit risk of some financial institutions," he said. The main concern is that if the banks and investment houses become increasingly reluctant to provide funds, the broader economy as a whole will slow since businesses will not be able to finance their operations. If that happens, there could be a destructive knock-on effect as spending and employment fall, running the risk in a worst case scenario of a recession, where growth turns negative. Normally, central banks would then cut interest rates but if lenders remain worried about possible exposure to US home loan securities that could be worthless, then they will only want to lend at higher rates. Shirakawa, a former BoJ official, said the BoJ's move should not be confused with a monetary loosening to support economic growth. "It's not yet a support to the real economy. The decision is to reduce concern in the market in terms of liquidity drying up," he said. A plunge in global share prices spilled over into Asia on Friday as worries grew that problems in the US sub-prime mortgage sector for risky borrowers are spreading beyond the US property market. In Tokyo, where share prices were down 2.61 percent by the lunch break, market players welcomed the BoJ's action. "They were driven to act," said a broker at a Japanese securities firm who declined to be named. "The subprime problem was seen as being about credit risks before but concerns are spreading now that this is posing risks to the financial system, or in other words to liquidity," he said. "It's about money flows ... The heart would stop beating if it does not have blood flowing. The market is concerned about increased risks," he said. US banks have suffered a sharp rise from defaults on high-risk mortgages and it is feared that losses by other banks and investment funds that are exposed to the US housing market could cause broader financial problems. Kenichi Yumoto, vice president at the forex sales department of Societe Generale in Tokyo, said he believed "the ECB acted to stem risks pre-emptively. "The move, with a record amount, however, may have fanned a market sentiment that they are heading to a crisis," Yumoto added. But the move by the Bank of Japan is "appreciated", he said, arguing the decision to follow the lead of the ECB gave investors a sense of policy consistency.<<