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Thread: Inter-bank loan failure: a rumor or not?

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    Default Inter-bank loan failure: a rumor or not?

    By Jim Willie of www.goldenjackass.com, member area, posted 05/14:

    "An event took place overnight Monday into Tuesday. An overnight inter-bank loan (bank to bank) that started in the west coast United States moved to Hong Kong, then Singapore, finally to London where it failed at 8am their time. It was large, like between $10 and $30 billion. Major ripple effects are certain. Repeats to this event are very likely, since not an isolated situation. My source provided a pure guess that it was the London subsidiary of Citigroup. It was expected that the US Federal Reserve would step in and clean up the mess. The failure was compared to a sewage block, one that would force feces backward into the banking system with a possible explosion soon. Colleagues were dispatched to check for any market evidence of an event, but it is early. Banks are extremely fragile right now, especially the largest banks."

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    Default Re: Inter-bank loan failure: a rumor or not?

    the tin foil hat crowd would probably tell you that this was a deliberate response to Shiela Bair's 'stress test' business ...



    It looks like it isn't just GM and Chrysler who have a new de-facto CEO ! However, the bankers made sure that this happened in London not New York so that the news wouldn't be 100% bottled up.

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    Default Re: Inter-bank loan failure: a rumor or not?

    They can go as far as I am concerned. The more destructive they are - the faster they should find their asses on the street.

    I am warming up my tar and buying feather pillows!

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    Default Re: Inter-bank loan failure: a rumor or not?

    Those in charge of causing this banking fiasco can go fish! Far as I'm concerned, maybe that's where they need to go; maybe they can catch some more 'suckers' that way.
    Last edited by threlayer; 05-17-2009 at 10:25 AM.
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Inter-bank loan failure: a rumor or not?

    Unfortunately for us, when they find their asses on the street, they'll force the taxpayer to pay for their losses! And the Congress will approve!

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    Default Re: Inter-bank loan failure: a rumor or not?

    ^^^ actually, the FED has already given several trillion dollars worth of such guarantees against losses ... with the implied consent of congress and backed by the full faith and credit of the US taxpayer !!! Thus future US taxpayers are already 'on the hook', despite the fact that these guarantees being routed via the FED versus TARP bypassed the need for a direct vote in Washington.

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