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Paulson to hold meeting with world finance figures
Calcutta News.Net
Thursday 9th October, 2008
The White House has announced that US Treasury Secretary Henry Paulson will have meetings with world financial ministers to discuss coordinating an answer to the global financial crisis.
A group of central bank governors from the Group of 20, an organization of the world's largest economies will convene on Saturday in Washington to speak about how to coordinate solutions to the economic crisis.
Major and emerging market economies have been severely affected by the crisis, prompting President George Bush to invite the Group of 7 finance ministers to the White House on the weekend.
The president will hear directly from the finance ministers about how the financial crisis is affecting their respective economies.
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Kalidas
10-10-08, 05:53 AM |
Defrosting the Liquidity Freeze
[CENTER][FONT=Tahoma]Visit my blogsite [URL]http://anilselarka.wordpress.com[/URL] for full article. It explains what is wrong with the liquidity and how could it be resolved.[/FONT][/CENTER]
[CENTER][FONT=Tahoma]Interest Rates -[/FONT][FONT=Tahoma]Liquidity Crisis[/FONT][/CENTER]
[CENTER][FONT=Georgia][COLOR=black]Inves[COLOR=black]tor[/COLOR]sâ Appetite for Risk Related Return (RRR)[/FONT][/COLOR][/CENTER]
[LEFT][FONT=Georgia]When one wants [COLOR=black]to make tons of money, he should be surrounded by thousands of fools[/FONT][/COLOR][FONT=Arial], [/FONT][FONT=Arial]says an old adage on the s[COLOR=black]tock market. It reiterated itself when Warren Buffet announced investment of $ 5 billions in Goldman Sachs (GS) and $ 3 billions in General Electric (GE) fetching him 10% interest per annum in addition to free warrants convertible into shares for next 5 years at currently depressed prices. [/FONT][/COLOR]
[FONT=Arial][/FONT]
[FONT=Arial]It was considered by many as signs of confidence from one of the most revered and legendary [COLOR=black]inves[COLOR=black]tor[/COLOR]s of all time, Mr. Warren Buffet. No one bothered to ask the investee companies, why was he given the yield of 10% that was normally associated with the junk grade bonds or companies. Have this bluest of blue chip companies degenerated into junk status? Are they next on line of âOlympic 2008 Parade of Bankrupt financiers?â[/FONT][/COLOR][/LEFT]
[LEFT][FONT=Georgia]No one even noticed the rapid transformation of the legendary [COLOR=black]inves[COLOR=black]tor[/COLOR] into usurious money lender at[/FONT][/COLOR][FONT=Arial] his advanced age of 78. No one even noticed that there was no real liquidity crisis, but the lenders s like Mr. [COLOR=black]Buffet have lined up on the side line to seek the Risk Related Return (RRR) from the potential borrowers. âGreater the Risk, Higher you Payâ was the simple message displayed on the foreheads of every possible lender.[/FONT][/COLOR][/LEFT]
[LEFT][FONT=Arial]Otherwise, when the FED was willing [COLOR=black]to lend at meager 1.5%, why should the GS and GE pay up 10% to Mr. Buffet? Within hours of receiving $ 3 billions from Mr. Buffet, GE rushed to the commercial paper market to raise further money for the payment of wages and salaries, and was glad to see the FED chief Mr. Bernanke dressed up in Santa Clause, disbursing billions more at just 2% (cut to 1.5% on following day). In short, $ 3 billions of Mr. Warren Buffet appear to have â[/FONT][/COLOR][FONT=Georgia]gone with the wind[/FONT][FONT=Arial] âwithin hours.[/FONT][/LEFT]
[LEFT][FONT=Arial]What Mr. [COLOR=black]Warren Buffer announced was misunderstood and misinterpreted by almost everyone on Wall Street, Main Street, Capitol Hill, Fed, and entire community of journalists, analysts, commentators and interviewers. [/FONT][/COLOR][FONT=Georgia]He meant, but did not say it, that the real market rates were extremely high, regardless of billions of dollars being printed in the backyard of Federal Reserve for free distribution later, and that no one was willing [COLOR=black]to lend unless he was rewarded with the return associated with the risk. (RRR)[/FONT][/COLOR][/LEFT]
[LEFT][FONT=Arial]Across the Atlantic, in London, relatively free market, the LIBOR rates rose [COLOR=black]to the highest, and yet no one was emerging as lender to lend to even commercial bank.[/FONT][/COLOR][/LEFT]
[LEFT][FONT=Arial]Why the Investors look for higher return when the risk increases?[/FONT]
[FONT=Arial][/FONT]
[FONT=Arial]Read further on the blogsite as above for full details[/FONT][/LEFT]
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Anonymous
10-10-08, 09:31 AM |
Man I'm glad I did not dabble in the stock market!
This sucker is gonna implode over the next couple of months!
Just remember the real money is made during huge crashes buy low and hold on!
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