drieuxster (drieuxster) wrote,

Where IS the Global Warming when you need it?

Just when it looked like relief was on its way, lending seized up again Friday.

With the Treasury's $700 billion financial industry bailout proposal in jeopardy, and with Thursday night's collapse of an agreement and subsequent JPMorgan Chase takeover of Washington Mutual - the largest bank failure in the nation's history - credit markets have again stalled.

"Things have frozen over again," said Steve Van Order, chief fixed income strategist with Calvert Funds. "Banks are nervous about lending to each other, and the commercial paper market has come to a standstill."
Another lending measure was just below a 26-year high. The "TED spread" - the difference between three-month Libor, what banks pay to borrow money for three months, and the three-month Treasury borrowing rates - was at 2.94% after hitting 3.37% Thursday, the widest margin for that measure since 1982. Just a three weeks ago, the TED spread was at 1.04%.
"The interbank lending markets are clogged up, because there is a freeze-up in the pipes that normally carry funding from central banks to banks to customers," Van Order explained.
"JPMorgan is going to have to take a writedown and ultimately raise capital," Van Order said. "The bank's lines of credit are being drawn on...and the acquisition puts another strain on lending."

[ cf Lending deep-freeze ]

They mean that there is some potential upper limit on the number of gagillion times a thing can be re-over-leveraged???? But what about the Faith Based Economics????

OR, are we suppose to be chanting
But Number Theory IS Just A Theory
and that will keep the evil demons of unbelief away from the true true believers???

Has anyone else noticed, that occasionally the Evil Main Stream media slips up and includes in the mortguage issue, things about commercial property, and, on other occassions, that some of the money that is going bad is the money dropped into investment grade homes, such as the classical comedy of the Mercede Marvel, where small down with 80,000 thot it was really cool to do the usual Million Dollar McMansion development complex, never quite working out whom in town could afford the mortguages, and, then, uh, they stopped trying to finish those houses... before they could sell them to sub-prime holders...

Hum??? should those sorts of bad loans also be a part of the discussion about how the evil liberals forced all of those evil liberal construction and development, and evil liberal land zoning, and the sort of evil liberals....

Or should we just keep clapping our hands, and tinkerBelle Will go On Balloning....

Hey, the national review at least has the courage to point out that it is all about Gay HomoZexuals, ( cf National Review asks: Did WaMu fail because it employed minorities? ) yes, it is America!!!!

And we too are more @WAR with those types than ever before....

It's what the troops are fighting for.....
Tags: economics, election, war

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