Euro Centrall Bank flies in 94 Billion Helicopter for Euro

[The once and future king]

The ECB has today loaned 94 billion Euros at 4% (Cheap cheap for you) to relieve liquidity problems in Euro Cash markets caused by sub prime contagion credit crunch.

They havnt done anything on this scale since 9/11.

PANIC?!

Veryvery good piece in the Telegraph.

Fed joins the party.

[adios]

Based on this news, what should we be buying? What should we be selling? Some people that I consider knowledgable especially in the credit markets are stating that they don't believe defaults have peaked in the subprime sector FWIW. Crazy valuations in real estate in the U.S. in various places, don't know if and how much this has moderated.

[samsonh]

This may seem slightly political but is an honest question. Don't these market interventions lead to larger and larger bubbles in the future?

[IsaacW]

1. People don't want to lend money because of possible defaults on what turned out to be bad loans.
2. Interest rates go up.
3. Central bank floods market with cheap cash.
4. ???
5. Profit!

Is the ??? step "people go back to making bad loans?"

[The once and future king]

Long on Yen is looking attractive.

[DesertCat]

My portfolio is down 15% over the last month. Yawn.

[The once and future king]

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My portfolio is down 15% over the last month. Yawn.

[/ QUOTE ]

That was yesterday.

[gonebroke2]

[ QUOTE ]
My portfolio is down 15% over the last month. Yawn.

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A lot of people right now would be happy with those returns.

[CrushinFelt]

My portfolio is about as close to dead even as you can get since the start of June.

[ahnuld]

[ QUOTE ]
My portfolio is down 15% over the last month. Yawn.

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9% here but whos counting. catching falling knives is fun fun!