![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
stinking of capital flight
Sep. 22nd, 2008 09:05 amGood morning. I am having trouble reaching data sources in New York City; accordingly, this will be brief.
Stocks are down, having given back about 60% of Friday's recovery right now. T-bill interest rates are up sharply, which means that people are also selling bonds. Gold is up sharply (all December futures, avg. +40, $900) and oil is up around 3-4% as well. And the US dollar is falling. This stinks of capital flight. The one bright spot is signs of stability in the TED spread, staying down in the low end of the crash indicator range, at 2.23.
Bloomberg, before some far-away router's problems started screwing with me, was talking about the impact of the bailout on the dollar. You won't like it:
Mish calls the Bush/Treasury plan "dictatorial power" and is not. happy. Dr. Roubini says that this is stage 9 (of 12) towards financial collapse as outlined by him back in February.
Good luck.
Stocks are down, having given back about 60% of Friday's recovery right now. T-bill interest rates are up sharply, which means that people are also selling bonds. Gold is up sharply (all December futures, avg. +40, $900) and oil is up around 3-4% as well. And the US dollar is falling. This stinks of capital flight. The one bright spot is signs of stability in the TED spread, staying down in the low end of the crash indicator range, at 2.23.
Bloomberg, before some far-away router's problems started screwing with me, was talking about the impact of the bailout on the dollar. You won't like it:
"As we get to the other side of this, the dollar will get crushed," said John Taylor, chairman of New York-based International Foreign Exchange Concepts Inc., the world's biggest currency hedge-fund firm, which manages about $15 billion. ... "The downdraft on the dollar from the hit to the balance sheet of the U.S. government will dwarf the short-term gains from solving the banking crisis," said David Woo, London-based global head of foreign-exchange strategy at Barclays, the third- biggest currency trader, according to a 2008 survey by Euromoney Institutional Investor Plc.I tend to agree. This came out as more details on the bailout package emerged, including this tidbit:
Sept. 21 (Bloomberg) -- The Bush administration widened the scope of its $700 billion plan to avert a financial meltdown by including assets other than mortgage-related securities. ... Officials now propose buying what they term troubled assets, without specifying the type, according to a document obtained by Bloomberg News and confirmed by a congressional aide. The change suggests the inclusion of instruments such as car and student loans, credit-card debt and any other troubled asset.Germany has harsh words for the entire mess, including the bailout package, saying they want no part of it and are not going to participate.
Mish calls the Bush/Treasury plan "dictatorial power" and is not. happy. Dr. Roubini says that this is stage 9 (of 12) towards financial collapse as outlined by him back in February.
Good luck.
