US Fed expanding securities lending program

[trader10]

Great news.... :thumbsup:

Fed expanding securities lending program
By Ruth Mantell

Last update: 8:31 a.m. EDT March 11, 2008

WASHINGTON (MarketWatch) -- To promote liquidity and "foster the functioning of financial markets more generally," the Federal Reserve said Tuesday it's expanding its securities lending program.
The Fed will lend up to $200 billion of Treasury securities to primary dealers secured for a term of 28 days, rather than overnight, as in the existing program. Securities will be made available through an auction process. Auctions will be held on a weekly basis, beginning on March 27. The Federal Open Market Committee has also authorized increases in its temporary reciprocal currency arrangements with the European Central Bank and the Swiss National Bank.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BF0011D60%2D9EB1% 2D4CE7%2DA048%2D866B8A01BB3C%7D&siteid=mktw

[ruggiero54]

:whistle: and on exoplanet 4V, life goes on as normal.

look up and smell the dark matter!

[John Saunders]

Hmmmm, so whilst the good ol' US of A is loosening monetary policy to stimulate the economy, in the Land Down-under we are tightening monetary policy to stop inflation.

In the good ol' US of A housing prices are falling because supply exceeds demand (thanks to "sub-prime" mortgages), in the Land Down-under we are facing housing price increases so large our grand kids will still be paying them off because of excess demand over supply.

Are we in the same universe or have I missed something?

[GrahamL]

Residential housing in our country is a great tax haven for investors ..
For a couple of young kids on wages?.. its a big ask ..and thats a pity.

[fringe_dweller]

the yanks dont have rising inflation, well they do maybe now i think - inflation genie is out in china now i read :scared:

gotta love this newfangled two tiered economy :lol: anyone seen one of those before? :shrug:

yeh its pretty kooky, people spending all their home equity, adding to inflation, in a feedback loop of madness

who would touch (reverse? :P ) negative gearing now?, it was a disaster when keating did it in '80s, for a very short time

100 year loans coming soon :lol:

[fringe_dweller]

I think remember how it all started? it was 'cause they said all property everywhere was 'undervalued' and the fact that it was pretty likely there wasnt going to be an old age pension one day, 20 years down the track or so, as it will send the country broke, plus a wage breakout of astronomical proportions for some professionals and others in senior positions, and went on a spending spree
and the mysterious hedge funds people, super, on and on it goes.
they are going to possibly limit or restrict the amount of foreigners buying residental properties as investment properties, that might help a little? i know its about 10% or so of all sales here, that might be out-of-staters included as well?

maybe some IIS members are adding to inflationary pressures, wont name names, with spending their on toys? :)

[JimmyH155]

:DSome people are predicting hyper inflation will kick in even this year. I read a report that it will make the German depression in the 1920's look like a picnic. Oil prices over $110 a barrel - it's all going the wrong way. As for government bailing out billions of dollars, thats only to try and keep the lid on big bank crashes:sadeyes: and paying out to prop up the idiots who lent money to those who had no prospects.
Best thing to do now is to buy a large scope, lots of eyepieces, and wait for the crash:D:D (a shot gun wouldn't be a bad idea as well!!)

[JimmyH155]

I forgot to add, we will all soon be living in a dark sky site, because the power will be off:D

[KG8]

The US is leading us, yet again, into a global financial collapse. What we’re seeing is the enviable implosion of a 60-year debt super-cycle. It's default (because it's impossible to pay it back) will plunge us into a global depression far worse then the 1930's depression. Why far worse? See the charts.

The good news? Those who have not kept their heads buried in the sand, buried in the TV, have seen in coming for some years and have gotten out of debt and stored wealth in safe places. Here in the 30's we had 30% unemployment, that meant 70% had incomes, and if they had a little savings and no debt they did ok.

No Debt + Savings = OK

Here are some charts, charts don't lie.

http://img.villagephotos.com/p/2008-3/1302334/debtUSDEBT.jpg



http://img.villagephotos.com/p/2008-3/1302334/Totaldebt.gif



http://img.villagephotos.com/p/2008-3/1302334/homevalueshistory.jpg

[fringe_dweller]

KG8, firstly i believe major fundamental changes were made to how the stock market works and rules,after the crash of the late 20's there can be no repeat of the '30s version - i cant remember the specifics tho, and i'm no expert either. it is self regulating to a degree now, as people buy when shares markets get really low, EDIT: and the advent of the so called 'mom and pop' investers, who never sell till they retire anyway, under any circumstances. and besides they didnt want another world war indirectly caused by it. they cost even more.
and as to charts lying, well whats the saying theres lies, damn lies and then theres statistics? i may of mixed metaphors as usual - but hey its free country?
imagine if china paid for even half of the software they use, the US would be back on its feet?

[KG8]

That's what they are counting on I am afraid :shrug:

Many leading figures are now speaking out, a little to late as usual.

http://www.news.com.au/business/story/0,23636,23347253-462,00.html
http://business.timesonline.co.uk/tol/business/economics/article3525678.ece
http://business.timesonline.co.uk/tol/business/economics/article3451136.ece

[fringe_dweller]

i dunno man, ive seen a lot of doomsday scenarios in the media, in my relatively short lifetime, it makes compelling reading and viewing, and we lap it up,i rememeber the ice age was coming in the 70's, amongst many others, i'm sorry i am a little sceptical of the worst happening, all this and record unemployment results for feb!!? its doing my head in! a recession isnt the same as a depression on the 30's scale.
reading thru that I NEED GOLD AND LOTS OF IT BWHAHAHHAHAHHAAA sheeesh 3.5k an oz in 5 years :) people will do anything to get out of real work LOL

[fringe_dweller]

times like this i am reminded that melbournes CBD is reputedly built (prematurely!) on the biggest gold deposit the world has ever known! lucky buggers :D dig it up!

[KG8]

Exactly. That is what the massive speculation in housing across australia has been all about, becoming a squillionare just by re-mortgaging your home and buying a couple more. But like $3500 gold the trick is to buy low and sell at the obvious top, walking away with your profits. Unfortunately most of the current crop of re investors bought at the top? Just like the tech boom, and just like in the tech boom they will lose.
Herd always loses.

[JimmyH155]

Actually, we have gota few years to go yet....The world as we know it is really scheduled to expire on December 21st 2012, (Read Adrian Gilbert's book "The end of time") It is all to do with the ancient Mayan calendars. They were pretty smart cookies though - they built pyramids and were excellent astronomers. So they must know a few things eh???;)