Central banks cut interest rates

Central banks cut interest rates

news.bbc.co.uk

US Treasury Secretary Henry Paulson said that more financial firms were expected to fail in the US despite a $700bn government bail-out programme.

(visit the link for the full news article)




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Mod Edit: Title fixed to reflect original article
Mod Edit: Breaking News Forum Submission Guidelines – Please Review This Link.


[edit on 8/10/2008 by Badge01]

I've been watching the BBC ticker announcing this news for a couple of hours now, and expecting an article to appear based entirely on the above title.

However the article that has appeared simply slips the quote in among various other snippets of information, without providing any details. You have to wonder whether the BBC was told to tone this news down. (Normally an article appears just minutes after the ticker announces the breaking news.)

In addition, surely you have to presume that "expected to fail" means "are about to fail".

news.bbc.co.uk
(visit the link for the full news article)

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Mod Edit: Title fixed to reflect original article


[edit on 8/10/2008 by Badge01]

Yesterday on Colbert, one of my favorite people in the world, Mad Money's Jim Cramer was the guest. He said something which he claimed was cut out from his NBC Today Show interview on Tuesday morning and which almost got passed right over even on Colbert (and in a way was neutralized by a joking comment by Colbert himself). Cramer predicted that it will become impossible to get your cash from an ATM for a period of time in the near future. Unfortunately, he wasn't asked or really given a chance to expound on this as the smoke & mirrors of the FDIC insurance issue came up. Not the first time I've seen that ploy used in the last couple of weeks, either... it seems obvious to me that the way they are redirecting people's attention away from a possible bank holiday/full ill-liquidity scenario is by saying "Well, you can't lose any money below $250,000 so that idea is ridiculous! Your money is safe." Whoever had just brought up the idea that you can't get your money is basically forced to acknowledge the FDIC insurance and say "Yes, the money is safe" and then the topic is changed or the interview is ended quickly before they have a chance to say that we're not talking long-term ill-liquidity here, but rather on the short term.

Though I poo-pooed the idea last week, I'm starting to think there's really alot to the pending bank closure theory from last week. I consider myself lucky because I live in a fairly tight knit community and shop at a grocery store where, if you get through the checkout line and discover you forgot your wallet, the cashier will address you by name and let you take your purchases home, knowing that you'll be returning quickly to settle up your debt with the store. That assurance makes me somewhat relieved because I know that those stores will honor my bank check if we reach a point where cash is unavailable to the public for any short period of time.

I worry alot about people who don't have any form of safety net, however. What will happen to those people if and when their bank either fully fails or is forced to close for a period of time? Scary, scary times we're living in.

I heard this tonight on the NBC national news. No names mentioned of course, but I would like to know ahead of time who they are.

This is just a bad deal all the way around and even a pork laden bailout bill just got special interests and wall street CEO's taken care of.