[movermike] movermike: Central Banks Inject Cash!

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Posted by movermike:
Central Banks Inject Cash!
http://www.movermike.com/posts/1186678473.shtml


   [1]BankNet360 reports that the European Central Bank has made over
   $130 Billion available to the capital markets at below market rates to
   maintain liquidity in the capital markets.

     "Liquidity in the market has completely dried up as investors
     arenât recycling their money back because of subprime concerns,"
     Saher Bin Jung, a trader on the commercial paper desk at
     Commerzbank AG, told Bloomberg. "Levels have shot up dramatically
     since yesterday as issuers are trying to entice investors back."

   While President Bush said moments ago that he believes there is
   "enough liquidity" in the markets.

     [2]The Fed, in an effort to get the funds rate back down (from
     5.5%) and meet the spike in demand for cash, lent $24 billion
     through its open market operations. It did so through two
     operations: A 14 day "repo," the name for an operation that adds
     reserves to the banking system and alleviates upward pressure on
     rates, and an additional $12 billion through an overnight repo. It
     is common for the Fed to do the two types of operations, but
     analysts said the amount added was relatively high, exceeding what
     it would have injected to cover expiring repos.

   [3]Central Banks [4]Liquidity [5]Mover Mike

References

   1. http://www.banknet360.com/news/NewsAbstract.do?na_id=9607
   2. http://online.wsj.com/article/SB118667107866393024.html?mod=hps_us_whats_news
   3. http://technorati.com/tag/Central+Banks
   4. http://technorati.com/tag/Liquidity
   5. http://technorati.com/tag/Mover+Mike