According to who is talking it is either a "shortage of liquidity" or a
"credit crunch". If it is Brown who is hectoring, the economy is
"fundamentally sound", it is a shortage of liquidity that is causing
"challenges". What this means is one bank does not trust another so they
will not lend to one another. But are all banks in this position? If bank A
needs money overnight to survive and borrows from bank B who needs to borrow
from bank C etc where does it end? It reminds me of of people who have huge
credit card debts. They transfer them to another credit card company who
offers free credit for 6 months. At the end of 6 months they are still in
debt and transfer to yet another credit card company until there are no more
credit card companies left to transfer the debt, and they end up with the
one they accrued the debt with in the first place. At that point the debtor
throws up his hands and cries bankrupt!. "A shortage of liquidity"
effectively means the banks are bust. Stand by for huge tax increases or
massive public service cuts!

Of course Brown did a good job Friday, so he said. Off he went to a summit
of EU leaders to mastermind a "coordinated" response to solving Europe's
liquidity problems. All EU governments would "work together" to "maintain
financial stability"!
Having taken a side swipe at little Ireland and Greece
for doing something to protect its ordinary savers by guaranteeing 100% of
their money, he announced proudly he was increasing UK savers protection to
a maximum of £50,000. He looked like the cat that had got the cream and came
home to finish his reshuffle. Yet less than 48 hours later the
"coordinated" European response has become a shambles with the unilateral
declaration that Germany will also guarantee 100% of savers money. It is
almost certain that the UK will have to follow suit or money will pour out
of here to overseas as fast as Brown's credibility poured down the drain.
This episode shows the pointlessness of the EU. When the heat is on,
"coordination"  is forgotten, it is everyone for themselves. The only time
we get any "coordination" is when a bunch of overpaid bureaucrats decide
what is best for you and me and make our lives even more difficult than they
are already. What is the point of it? On anything major they cannot agree.
The CAP, protectionism, the "constitution", "climate change", the whole
thing has degenerated into farce. How can we hope to compete with the East
with this bunch of freeloaders running the show?

Brown is always one step behind. We all now know that interest rates will
come down. It will not do any good but they will soon anyway. The
"independent" BoE is already being leaned on by "coordinated" spin from
Darling and Co that interest rates need to come down, but it "would be quite
wrong to interfere with the BoE's decisions" on interest rates. No spin and
politicking said Brown when he was gifted the Premiership. So one year later
what does he do? Brings back a twice disgraced minister for a third time, a
guy universally despised as a master of spin and sleaze. It will all end in
our tears!

On 5 Oct, 21:21, "Not Today"  wrote:
> According to who is talking it is either a "shortage of liquidity" or a
> "credit crunch". If it is Brown who is hectoring, the economy is
> "fundamentally sound", it is a shortage of liquidity that is causing
> "challenges". What this means is one bank does not trust another so they
> will not lend to one another. But are all banks in this position? If bank A
> needs money overnight to survive and borrows from bank B who needs to borrow
> from bank C etc where does it end? It reminds me of of people who have huge
> credit card debts. They transfer them to another credit card company who
> offers free credit for 6 months. At the end of 6 months they are still in
> debt and transfer to yet another credit card company until there are no more
> credit card companies left to transfer the debt, and they end up with the
> one they accrued the debt with in the first place. At that point the debtor
> throws up his hands and cries bankrupt!. "A shortage of liquidity"
> effectively means the banks are bust. Stand by for huge tax increases or
> massive public service cuts!
>
> Of course Brown did a good job Friday, so he said. Off he went to a summit
> of EU leaders to mastermind a "coordinated" response to solving Europe's
> liquidity problems. All EU governments would "work together" to "maintain
> financial stability"!
> Having taken a side swipe at little Ireland and Greece
> for doing something to protect its ordinary savers by guaranteeing 100% of
> their money, he announced proudly he was increasing UK savers protection to
> a maximum of £50,000. He looked like the cat that had got the cream and came
> home to finish his reshuffle. Yet less than 48 hours later the
> "coordinated" European response has become a shambles with the unilateral
> declaration that Germany will also guarantee 100% of savers money. It is
> almost certain that the UK will have to follow suit or money will pour out
> of here to overseas as fast as Brown's credibility poured down the drain.
> This episode shows the pointlessness of the EU. When the heat is on,
> "coordination"  is forgotten, it is everyone for themselves. The only time
> we get any "coordination" is when a bunch of overpaid bureaucrats decide
> what is best for you and me and make our lives even more difficult than they
> are already. What is the point of it? On anything major they cannot agree> The CAP, protectionism, the "constitution", "climate change", the whole
> thing has degenerated into farce. How can we hope to compete with the East
> with this bunch of freeloaders running the show?
>
> Brown is always one step behind. We all now know that interest rates will
> come down. It will not do any good but they will soon anyway. The
> "independent" BoE is already being leaned on by "coordinated" spin from
> Darling and Co that interest rates need to come down, but it "would be quite
> wrong to interfere with the BoE's decisions" on interest rates. No spin and
> politicking said Brown when he was gifted the Premiership. So one year later
> what does he do? Brings back a twice disgraced minister for a third time, a
> guy universally despised as a master of spin and sleaze. It will all end in
> our tears!

babylon system vampire beast fall
see
bless

"Not Today"  wrote in message 
news:287t66.vgb.19.1@news.alt.net...
> According to who is talking it is either a "shortage of liquidity" or a
> "credit crunch". If it is Brown who is hectoring, the economy is
> "fundamentally sound", it is a shortage of liquidity that is causing
> "challenges". What this means is one bank does not trust another so they
> will not lend to one another. But are all banks in this position? If bank 
> A
> needs money overnight to survive and borrows from bank B who needs to 
> borrow

It's all down to exponentials... and we're in one.