EMERGENCY: ECB OFFERS BANKS UNLIMITED FUNDS
December 18th, 2007Crisis? What crisis? There’s unlimited funds out there.
Via: BBC:
The hope is that lower interbank rates will mean that banks will also be able to make more funds available at cheaper rates to companies and individuals.
The ECB’s action has succeeded in cutting short-term lending rates, although they are still above the 4% ECB refinancing rate..
In Frankfurt on Tuesday morning the two-week Euribor average of interbank unsecured lending rates did fall to 4.452%, compared to rates for two-week euro money market rate of 4.949% for interbank borrowing which has been in place over the past few days.
The two-week ECB refinancing operation is the first time it has said it would offer banks unlimited funds, above a certain interest rate, since 9 August when the credit crisis started.
I can wrap my simple head around managed resource depletion, water and topsoil scarcity, franken-pHood and environmentally friendly killing technologies.
What I can not grasp though are these dire stories from the main stream press about the current financial crisis. Even my former neighbour who is posted in Singapore working for one of the big Australian banks is ####-scared. But really how is this crisis actually real when the ones and zeroes (confetti) keep being created out of thin air?
What am I missing?
By the way Kevin – brilliant website. Realisation of dire situation translated to action (Farmlet). Blogging tied to real solutions!
All the best.