It's the end of the world as we know it

Monday 17 March 2008 - It's the end of the world as we know it

Presented by Paul Donovan


+ Events this weekend mark, in all probability, a structural break for markets that extends beyond the current crisis. After two decades in which risk premia have been in trend decline, risk is back - and is likely to endure beyond the current problems.


+ The Fed's injections of liquidity this weekend have narrowed swap spreads in Asia (inevitably). However they have not tackled the underlying causes of the problem, and are just treating the symptoms. As such, we remain wary of asset market volatility.


+ The Fed is not injecting "surplus" liquidity through its actions. Rather it is meeting a sudden, dangerous increase in liquidity demand. As such this should not be regarded as inflationary, but as a necessary action to prevent deflation threats.


+ The global nature of this crisis is to be stressed. Banking system credit standards are likely to tighten in Europe as well as in the United States, and as such will create real economic consequences. We believe that this warrants easing from the ECB and the Bank of England.

Category:

News & Politics

Tags:

• ubs
• economics
• financial
• crisis
• markets
• structural
• break
• risk
• premia
• cost
• capital
• bear
• stearns
• jp
• morgan
• fed
• interest

[Charlotte333]

w3 youtubedotcom/watch?v=7NCZ4l8F­CFc

[Charlotte333]

Currency to the PEOPLE. Bank may stay PRIVATE.

[Charlotte333]

W3 youtubedotcom/watch?v=7NCZ4l8F­CFc

[Charlotte333]

We live in an infinite universe ... yet you call yourelves "econo" myths. We will not live in lender/debtor any more. We are Bohemian Blue Blood who are heading to the market ... if you haven't kept us in the stall, killing our spirit, for too long a duration. Look to your symbols ... we have been here all along.

[Charlotte333]

W3.youtubeDOTcom/watch?v=cGqro­T1FZ5Y

It's the End of The World and I really do feel fine ... set the Bohemian Blue Blood Gypsie Mare free slowly, this philly does not want to trip to hard coming out of the "stall".

She is thirsty ... lead her to the currency ... stay on the bank and watch her drink, watch her grow.

[Charlotte333]

It's the End of the World as We Know it and I FEEL FINE.

The Bohemian Blue Blood Mare will not be rode, nor will she work for you. She wares a silver ring on her solo horn. The bank and the currency are not the same thing. She just wants the currency.