Posted On: Tuesday, September 30, 2008, 12:05:00 PM EST
The Madness Of The Crowd
Author: Jim Sinclair
WAKE UP.
In this crisis $250 billion is chump change. As a matter of fact, $750 billion is chump change.
The "Madness of the Crowd" does not recognize that the Fed lent $1.25 trillion last week. These loans were not to strong, but ailing financial entities.
Surprise, surprise, the $1.25 trillion in one week is much larger than $250 or $750 billion.
Stay the course and ignore the shorts, or if u can't stand the heat in the gold kitchen as Harry Truman kind of said, then please leave immediately!
"The ECB is no longer able to inject liquidity because the money is just coming back to them again. This is extremely serious. If monetary policy is no longer working, there is a risk that the whole system will blow up in days," he said.
Banking crash hits Europe as ECB loses traction
By Ambrose Evans-Pritchard
Last Updated: 10:37AM BST 30 Sep 2008
The Dutch-Belgian bank Fortis, Britain's Bradford and Bingley, and Iceland's Glitnir, were all partially or fully nationalized after failing to roll-over debts in the short-term money markets, while the French state pledged support for the Franco-Belgian lender Dexia after the share price collapsed on reports of a capital shortage.
"The European financial sector is on trial: we have to support our banks." said French President Nicolas Sarkozy. He has reportedly ordered the state investment arm Caisse Des Depots to shore up Dexia, even though the bank is based in Belgium.
Germany's Hypo Real Estate, a commercial property lender, was rescued with a €35bn lifeline from a consortium of local banks. The lender has $560bn in liabilities, almost as much as Lehman Brothers.
Hypo Real's share price crashed 74pc, setting off a masse exodus from financial stocks in Frankfurt. Commerzbank fell 23pc and Aareal Bank was off 43pc.
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