Posts Tagged ‘LIBOR’

Notes From Underground: Employment numbers were robust … YADA YADA YADA

May 7, 2010

Both Canada and the U.S. reported strong job numbers and the market paid heed for a very short period of time. We are focused on credit for that is where the markets are focused. The global markets are enamored with the possibility of combined action by the G7 members, especially with the ECB leading the way¬†by providing a massive dose of short-term liquidity to remove the pressure on the LIBOR rate–European Banks are having funding problems on the overnight markets.

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Notes From Underground: “We hear but we don’t listen”

May 6, 2010

In 2001 when the European Union was in a recession, financial analysts were pressing the ECB president,Wim Duisenberg, to cut interest rates. In attempting to gain credibility as a tough, hard-money institution, Duisenberg responded, “We hear but we do not listen.” Well, we would say to his successor, Jean-Claude Trichet, it is time to start listening.

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