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Worried Banks Horde Cash

Worried Banks Horde Cash

Financial Times   |  Chris Giles, James Politi   |   March 26, 2008 06:33 PM

Read More: Banks, Central Banks, Credit Crisis, Credit Crunch, Equity Markets, Federal Reserve, Financial Institutions, House Prices, Money Markets, Stocks Markets, Breaking Business News

Central banks' efforts to ease strains in the money markets are failing to stop financial institutions from hoarding cash, stoking fears that the recent respite in equity markets may not signal the end of the credit crisis.

Banks' borrowing costs - a sign of their willingness to lend to each other - in the US, eurozone and the UK rose again even after the Federal Reserve's unprecedented activity in lending to retail and investment banks against weaker than usual collateral and similar action in Europe.

The continued friction in the money markets came even as stock markets were showing new signs of optimism in spite of fresh data from the US showing consumers at their most pessimistic for 35 years and house prices falling at the fastest rate on record.


 

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collapse VictorLudorum See Profile I'm a Fan of VictorLudorum

Return of The Jedi

www.youtube.com/shahkhansher

favoriteFavorite Flag as abusive Posted 10:23 AM on 03/27/2008
collapse rbspickles See Profile I'm a Fan of rbspickles

Maybe it's time for us Americans to quit looking at the almighty dollar for happiness. Maybe we'll again go to each other for comfort instead of JC Penneys or WalMart. Maybe we'll stop buying expensive electronic babysitters for our children and actually talk and play with them. Maybe we'll have meals at the dinner table instead out of sacks. Maybe, just maybe we'll remember our families and friends. Maybe this downturn is just the wake up call we need to remember what is really important in life.

Crap! There goes my alarm clock. Time to wake up.

favoriteFavorite Flag as abusive Posted 09:28 AM on 03/27/2008
collapse totaldisbelief See Profile I'm a Fan of totaldisbelief

If I had my bills paid off, and knew I was going to have a job ongoing into the future, I'd think about buying a house when they get cheap enough to afford on my wages that are lower than they were five ....even ten years ago. Meanwhile I'll try to figure out why so many people bought houses that they so obviously couldn't afford, not matter who told them they could and that it would be so easy and convenient.

favoriteFavorite Flag as abusive Posted 07:38 AM on 03/27/2008
collapse xrepublican See Profile I'm a Fan of xrepublican

Problem with home ownership is that taxes are forever and are only going up.

Local property taxes keep going up even as housing values drop. State and Federal Governments keep dumping more and more on the local level and property taxes keep rising as a result.

Local taxes have tripled here in 15 years. Some people in houses that are paid for can't afford the local property tax burden.

favoriteFavorite Flag as abusive Posted 08:12 AM on 03/27/2008
collapse xrepublican See Profile I'm a Fan of xrepublican

Well, it's cheaper to burn for heat than oil........

If they were smart they'd be hoarding gold....... or Euros...... or Yen......

Anyone have any idea what M3 is now at? Looks like we'll be giving the Weimar Republic a run for their money... break out those wheelbarrows......

favoriteFavorite Flag as abusive Posted 07:02 AM on 03/27/2008
collapse EinChicago See Profile I'm a Fan of EinChicago

Ummmm. Anyone not seeing the oncoming burst of teh Europ bubble is a fool. One just needs to look at the emergency meeting held by teh BoE yesterday where the bankers practically got down on their knees and begged for a rate cut against the similar meeting in germany with manufacturers and teh bundesbank to see that the EYU is setting itself up for a massive implosion in late 2008. Several countries are fighting double digit inflation. Several countries are fighting double digit deflation and the two groups are practically at war over rate cuts.

favoriteFavorite Flag as abusive Posted 10:51 AM on 03/27/2008
collapse jhb90277 See Profile I'm a Fan of jhb90277

Do they not know the difference between "horde" and "hoard"?

favoriteFavorite Flag as abusive Posted 01:48 AM on 03/27/2008
collapse SonofLiberty1 See Profile I'm a Fan of SonofLiberty1

Banks hoarding cash?

Sounds pretty serious to me...

And everyone going nuts for Obama who has little experience?

Are we really serious here?

Trading one idiot for a democratic idiot?

Don't blame me but I think folks are nuts!

favoriteFavorite Flag as abusive Posted 12:51 AM on 03/27/2008
collapse maggiemae656 See Profile I'm a Fan of maggiemae656

I think that a lot of Americans are already crawling along the bottom and have been dealing with the problems for a while now...the system has created an insidious cancer in our economy that is finally being diagnosed. We are experiencing an enlargement of the tumor that was planted by our government and the corporations it supports.

It is inevitable that many of those who participated in the taking away of American jobs and salaries would eventually pay a price--it appears that they never thought it would affect them. How long did these people think they could ride an American wave by diverting their capital to foreign investments, by rewarding companies who take their operations overseas by continuing to purchase their stocks, by profiting from the use of foreign illegal and guest worker labor? These are clearly not business people, but people who have one thing on their mind--profits. That one-track mind, greedy thinking has brought down our system. I hope there are some people in the wings that can take over the helm and guide us back to some sense of life without so much concern for the almighty dollar.

Most of us are, or will be, suffering over the state of economic affairs...but I feel that those who have been so arrogant about pushing their money-making ideals on this country will hurt moreso than the average American who is no stranger to hard times.

favoriteFavorite Flag as abusive Posted 10:45 PM on 03/26/2008
collapse Sundialsvc4 See Profile I'm a Fan of Sundialsvc4

I'll tack a "favorite" sticker on that post, too. The "cancer" that you spoke of, I think, is also manifested in the military industrial complex ... which derives much of its power and its appeal from the same motives, and which is indeed a ruthlessly-metastasizing cancer. It consumes everything, diverts precious lifeblood (literally and figuratively) to itself, and gives nothing in return.

This nation, though, is still here. Rosie the Riveter might have been napping, and Uncle Sam might have been in the sauna, but the nation is still here. More than 320 million citizens know of a nation that was founded on freedom and grew to a pinnacle of real industrial and economic power. That nation, composed of its citizens, is not going to long permit that power to be stripped away by less than a thousand corrupt leaders or a few thousand greedy bankers. The leaders are "unfit to rule," and the bankers are "inept."

favoriteFavorite Flag as abusive Posted 09:16 AM on 03/27/2008
collapse chendri887 See Profile I'm a Fan of chendri887

Also very well said. However, I do not share your sense of optimism.

favoriteFavorite Flag as abusive Posted 04:19 PM on 03/27/2008
collapse chendri887 See Profile I'm a Fan of chendri887

Very well said.

favoriteFavorite Flag as abusive Posted 01:52 AM on 03/27/2008
collapse loki See Profile I'm a Fan of loki

I like how banks can make a run on themselves, but we the people are prevented from this.
Sounds like typical US capitalism at its best.

favoriteFavorite Flag as abusive Posted 09:52 PM on 03/26/2008
collapse civilbehavior See Profile I'm a Fan of civilbehavior



At the rate of the slim to non existent comments on headlines like this anymore it is pretty obvious that the plutocrats win again.

They have so desensitized people to the collapse of the system that nothing seems to faze people.

I think we will slowly just get sucked down the drain and there will be nothing or no one to pull the dead from the debris.

Hate to sound so pessimistic but at this point there isn't a day that goes by that it all doesn't get worse.

favoriteFavorite Flag as abusive Posted 09:52 PM on 03/26/2008
collapse chendri887 See Profile I'm a Fan of chendri887

I share your sense of gloom.

favoriteFavorite Flag as abusive Posted 01:52 AM on 03/27/2008
collapse peaceandfreedom See Profile I'm a Fan of peaceandfreedom

this is news? When have banks ever acted in the interest (pun intended) of the consumer? They will take this cheap money, and the even cheaper sure to come our way as this rate fails to spark the economy, and put it in Euros until the rates soar here and then lend it back to us. That is how the rich get richer.

favoriteFavorite Flag as abusive Posted 09:29 PM on 03/26/2008
collapse olephart See Profile I'm a Fan of olephart

Even the banks are keeping their money under the mattress. Rather than bail their sorry rich butts out, they ought to take a lesson from China and hang a few dozen of the thieving bastards with the understand that there's plenty of rope left if those who are left try to push any more of their fraudulent securities off on investors. A few corpses left hanging on Wall Street should do the trick.

favoriteFavorite Flag as abusive Posted 09:27 PM on 03/26/2008
collapse WIpatriot See Profile I'm a Fan of WIpatriot

...hanging from the lamp posts on Wall Street.

favoriteFavorite Flag as abusive Posted 09:56 PM on 03/27/2008
collapse WIpatriot See Profile I'm a Fan of WIpatriot

Banks hording cash (to cover their assets) who would have guessed??

favoriteFavorite Flag as abusive Posted 07:15 PM on 03/26/2008
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