Post by account_disabled on May 1, 2024 21:15:31 GMT -7
Commodity traders are calling for oil price to fall below now but just a few months ago we traded as high as to driving all the manufacturers and airlines to purchase expensive futures contracts to stop loss. In a few months time after Lehman s fall the worlds major economies went from inflation to disinflation and currently at serious risk of deflation.
Why is that we did not realize the need for quantitative easing in addition to monetary policies before we cut the rates to Why is that when Fed was already slashing rates to cope with a fast deteriorating economy driven by asset deleveraging and credit concern BoE and ECB were both slow to act We turned our backs South Africa WhatsApp Number List on Lehman Brothers and for very good reason as well don t we all understand the danger of moral hazard and perverse incentives and now we are granting everyone a piece of TARP with more fancy acronyms in the making.
The fall of Lehman had serious consequences including but not limited to a colossus explosion of credit spread an unprecedented flight to quality in the fixed income market drying of the short term funding market and stress on interbank lending etc. Traditionally banks are the ones responsible for distributing risk intermediating short term lending and providing credit. Now central banks have to take over these responsibilities stepping into virtually every link of the financial market activities or even taking over control of some of the banks. Every borrowing and lending transaction that used to be deemed ordinary and happen on a day to day basis has come to a halt.
Why is that we did not realize the need for quantitative easing in addition to monetary policies before we cut the rates to Why is that when Fed was already slashing rates to cope with a fast deteriorating economy driven by asset deleveraging and credit concern BoE and ECB were both slow to act We turned our backs South Africa WhatsApp Number List on Lehman Brothers and for very good reason as well don t we all understand the danger of moral hazard and perverse incentives and now we are granting everyone a piece of TARP with more fancy acronyms in the making.
The fall of Lehman had serious consequences including but not limited to a colossus explosion of credit spread an unprecedented flight to quality in the fixed income market drying of the short term funding market and stress on interbank lending etc. Traditionally banks are the ones responsible for distributing risk intermediating short term lending and providing credit. Now central banks have to take over these responsibilities stepping into virtually every link of the financial market activities or even taking over control of some of the banks. Every borrowing and lending transaction that used to be deemed ordinary and happen on a day to day basis has come to a halt.