News overnight is that Europe is buying some of its banks with US backing; people are not acting crazy; DOW futures on Squawkbox are up over 300.
I'm not a finance guy. Have they dodged a bullet? Is it an illusion? For how long? What's next? Mig. Now where's the fun in that! - Megatron
you are the media you consume.
Are perishable foodstuffs hanging around on docks, etc going bad? Is this how a food shortage in the civilized world can start? Stuff is produced but it sits around and goes bad? Rats and mice will have a field day. Oh yeah, increase in disease carriers. Now where's the fun in that! - Megatron
India Times: Commodity traders hit by arrest of interbank lending (27 October, 2008)
The credit crisis has begun to take a toll on the real economy, slowly but surely. Among the sectors feeling the pinch, is commodities, though traders are not openly expressing their angst. A large south-based trader of edible oils has been unable to procure de-gummed soybean oil from a South American exporter, whose bank refused to discount the latter's bill owing to shortage of dollars. "Our banker, State Bank of India, issued a letter of credit (LC) to the exporter's bank in South America, but the bank refused to negotiate the LC and pay the exporter. We will now have to negotiate with another banker to get the consignment totalling 1.5 million tonne of de-gummed soybean oil," said a company source.
A large south-based trader of edible oils has been unable to procure de-gummed soybean oil from a South American exporter, whose bank refused to discount the latter's bill owing to shortage of dollars.
"Our banker, State Bank of India, issued a letter of credit (LC) to the exporter's bank in South America, but the bank refused to negotiate the LC and pay the exporter. We will now have to negotiate with another banker to get the consignment totalling 1.5 million tonne of de-gummed soybean oil," said a company source.
Guys on SquawkBox are all smiles; DOW futures are up 450 ish.
If 1 AM (CA time) comes around and the rally doesn't hold, everybody will be heading for the exit doors.
Today could be definitive; the smiling people WANT this to work. Now where's the fun in that! - Megatron
The Belgian finance minister, Didier Reynders, said, "We are committed in all European states to recapitalize banks if we establish a threat to solvency and a risk to the economy." "The goal is to kick-start the interbank lending market," he said. Mr. Reynders said the European Central Bank had also committed to helping to unfreeze the commercial paper market, which companies use to finance day-to-day operations.
"The goal is to kick-start the interbank lending market," he said.
Mr. Reynders said the European Central Bank had also committed to helping to unfreeze the commercial paper market, which companies use to finance day-to-day operations.
