Bank-to-bank lending freezes; bankers ask "who's next?

Bank-to-bank lending freezes; bankers ask "who's next?

www.reuters.com

LONDON (Reuters) - Financial trading and interbank lending almost ground to a halt on Monday as banks grew fearful of dealing with each other following Friday's near collapse of U.S. investment firm Bear Stearns, prompting talk of another round of coordinated central bank aid.

As banking stock prices and the U.S. dollar plummeted, banks' access to unsecured borrowing from other banks fell to a relative trickle and dealers said the over-the-counter market had become highly discriminatory, depending on the bank name.

"Banks and institutions are just scrambling for cash, any cash they can get their hands on," said a money market trader at a European bank.

(visit the link for the full news article)

I just want Bush to say it. We are in a recession! Does he think we can't read or understand what is going on?

www.reuters.com
(visit the link for the full news article)


Did I post this right???

[edit on 17-3-2008 by freedomataprice]

You posted it right! I just think Bush won't say it until the last possible moment. People in power don't want to look incompetent to their followers, so they stall and hide it and cover it up in anyway. This is his last year and his is trying to look the best possible.

So, what does this mean for the average Joe? Will banks stop lending to customers now too?

Sorry dude, but this is all you're going to get for the moment.

I had thought he had been caught accidently admitting it on some news programme or something, but i can't find the evidence to back it up.

Anyway, it's good to see that the dog-eat-dog world of business is starting to lose it's composure.

reply to post by freedomataprice


No, he just thinks that if he says something over and over again it will magically be true.

Iraq has WMD
We're prepared for Katrina
The economy is still strong
Karl Rove is a Turd Blossom, wait that one is true.

I think its much more worse than a recession.
And saying its a recessin will just make it work, because some refuse all means of reality until Bush says differently.

Imagine if the FED hadnt of bailed out bear sterns, there would of been a run on the bank.
Confidence would of nosedived along with other banks, forget recession, talk depression.

I always knew since about 2004 the economy was the next big thing to explode. I planned, budgeted and did everythign I could to ensure i had NO DEBT when it happened.

I didnt know when, I just knew I had to lose it all ASAP, im down to $1800 left, and will be down to 0$ in 3 weeks.

Im worried I might just miss out on beating it.

The FED is going to cut interst rates by a 1.0% point.

most interest rate cuts are met with 4-5 days of postive trading, but then slowly it slip again.
Id be surprisde if this interest rate cut yeilds 2 days of positive trading.

The people know its coming, wether bush admits it or not.
he's pointless now..

The frustration I feel with this situation is the same I have when my children try to tell a lie.

I know they are lying but they just won't fess up!!!

When that happenes I take away all their toys and give them extra chores, but what do you do to a Bush???

reply to post by Agit8dChop


What do you think will happen to those of us that do have debt??

Because I do and I am worried? I wish the FED would come and bail me out!!

who knows.
I jsut believe no debt, means you owe no one nothing, and cannot be blackmailed into anything.

With the US miiltary being unable to fill quota's... what happens when they do NEED to go to war?

A Draft would almost definately bring about a civilwar, because no one trusts bush, so, they cant implement a draft..... but if youve got debt?
If youve got a mortgage and a family to feed... they bank will just force you to fight, or youll lose your house, forcing your family to live on the streets. No man would want that for his family, so of course he'll fight without hassle.

This is how I see it.

It'll be different in Aus, because England will force Nz and aus to go anyways..

interest rates here in Aus are rising at a stupid level.
Inflation is rife,

I could buy a 600ml coke for $1.80 in 2002, now its close to $4.00
Buying a house in Perth in 2002, was around $180-200,000
Now, the average is above $450,000
No one needs to mention fuel costs.
Food has risen, 4 years ago shopping for a week was around $100, its closer to $180 now.

The American economy is in the opening stages of a meltdown, asia and england will follow.

If I had a mortgage, id be reading the fine fine fine print, to seee just what exactly the bank has detailed in the case of it running out of money, and needing funds URGENTLY!

No house payments but I do have some old student loans and some credit card debt. I have been paying on it but I still have a way to go.

And I have a car payment, trying to get out of that one.

This guy is a trip.

Thought this 30 second clip was worth the watch.

March 11, 2008, Jim Cramer

reply to post by jhill76


I don't know if this is actually related to the current situation, but it is something that caught my eye today. I work customer service for a major credit card company and there was a daily update that LOC (line of credit) type accounts for small business customers were available upon solicitation only as of today. So if a regular small business credit card wasn't enough for you, you now cannot request to move up to the next level so to speak unless the credit card company solicits you. I've also noticed a sharp decline in the amount of limit increases being approved, which is understandable given the current economic situation. Whether or not it is actually related or not is open for debate, but the timing of this announcement caught my attention.

I wish that they would just be honest and say "we're taking a more conservative approach for the time being" instead of having us just feed a bunch of lines to the consumer in hopes that they'll accept my answer and move on.

It kills the soul to work for a company like that, but you have to do what you have to do to survive, or so I hear.

reply to post by earth2


Love it!!

Starred!!!