December 19, 2007

European Central Bank's helicopter drops €348,000,000,000 down to the panicked banks in a single day. All through Europe, it's now raining Euros!!!


And we trust these pretty colored little pieces of paper why?


E.C.B. Makes $500 Billion Infusion

FRANKFURT — The European Central Bank on Tuesday pumped 348 billion euros ($500 billion) into the financial system, easing conditions in credit markets grappling with a global lending squeeze linked to the United States housing downturn and traditional year-end demands for cash.

39 comments:

Dummie said...

fun and profit!

Anonymous said...

Please give me a million Euros. I heard you are willing to accept any collateral. I am a prime borrower probably better than the banks you are lending to. My credentials are as below;

- My salary slips for the past 3 months. I have outstanding payday loan. (Super AAA CDOs yielding >300%)
- My Car 1999 Honda Civic. Car Loan still unpaid. (Probably packaged into a AAA CDO)
- My small Flat presently worth $200,000. Though I have unpaid mortgage of around 180,000.(Probably pacakaged into another AAA CDO)
- My two credit cards, with balance ( 2 more AAA CDOs)
- My Education Loan still unpaid.(another one AAA)

Thanks Santa - God bless you.

Andrew from Russia said...

In "In God we Trust" we Trust - a recursive motto of cash hoarders.

Died said...

Yea, I live in europe, and my heart scipped a beat when I read about it.

Inflation it is then, sigh...

TM said...

I'm still not sure inflation is the main worry, since even more hundreds of billions of euros are disappearing each day (along with dollars), perhaps more than the central banks can inject into the market.

The virtual printing press may be rolling day and night, but those euros are are being shoveled directly into the furnace.

Anonymous said...

LIVE by the Throttle,

DIE by the Throttle...

Sick and Dying America

"There is a sucker born evry minute"
P.T. Barnum
"Mission Accomplished"
Gerorge W. Bush

westwest888 said...

I wonder if the "stealth agenda" is to make the Euro fall to increase "competitiveness". Only the United States could make toilet paper currency fashionable. Unbelievable.

bickerer said...

One of the things learned here on housingpanic is that the cost of housing in the UK and elsewhere in Europe had gotten even more insane than here in the US.

Now they're dumping euros onto the banks like turning the dumpster behind mcdonalds upside down for a gaggle of crows and seagulls, just like the dollar being spread like manure here.

So when does the euro start tanking? Enough of this holier than thou, Americans are the only idiots on the planet business (not to take away from the fact that many are self-absorbed imbeciles, but they're not the only self-absorbed imbeciles).

Anonymous said...

200 buck turkeys i heard due to bird flu..yah ok.

Anonymous said...

"I'm still not sure inflation is the main worry, since even more hundreds of billions of euros are disappearing each day (along with dollars), perhaps more than the central banks can inject into the market."

Exactly. The imaginary, virtual "wealth" is evaporating. It's not real money, never was. So replacing it with more imaginary wealth is just fine. Yee-haw! Just pretend everything is OK...

Anonymous said...

Geez look here. Markets up yet again.

My goodness I sure wish I had followed your advice and stuffed my money under the mattress.

BWA HA HA HA HA HA

HP LOSES AGAIN.

Anonymous said...

I have always said that Bernanke will be writing bailout checks in units of $T - that is 12 zeros...
just wait till they start to get some counterparty failures on those derivatives deals - this has barely made it into the housing/mortgage discussions but it is potentially larger than the entire debt pyramid...

Anonymous said...

This is pure madness and a reflection of just how bankrupt the current financial and monetary system is.

Anonymous said...

As long as you can buy stuff with it. Would you rather be paid in seashells or acorns? We are all stuck in the system.

borkafatty said...

I have an idea that will solve this entire problem...mail each and every person in this country a $300,000 dollar check, and this should keep the economy afloat for a good period...Why bail out the bankers, it is us the consumer who will keep the economy going.

What am i crazy you say?...what is the big deal..the dollar is history...might as well party it down to 40 and then celebrate it into oblivion....it will at least prop up the economy and let people payoff their debt with worthless dollars...it could and should happen...bailing out the bankers is useless, as we are already in a recession...

I know i went xmas shopping last evening..stores were empty...employees were just standing around....the layoffs after xmas are going to be massive.

trade784 said...
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trade784 said...
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i love diana o said...

Bob pisani kept talking about this all day yesterday trying to prop up the market. It should be seen as a bad thing instead of good.I wonder how much of countrywides deposits were wiped out w/ their bank run?

Anonymous said...

swiss francs win because sovereignty rules!

Anonymous said...

Sorry, I just saw you did post my comment.

I take everything I just said back; my bad..
---------------------------

at least you admit it and take it like a man....

Anonymous said...

.


In San Fran, it's raining men!


.

Anonymous said...

Hey, I’ve been telling you guys this for a while now.
In Europe this crash will lead to war on the streets.
Its just the way the Europeans are.

Knee jerk reaction to Northern Rock
ECB knee jerk reaction to be like Wall st.
The entire EU creation is a knee jerk reaction to Hollywood’s influence.

Got popcorn?

Anonymous said...

It has reached the point where you need to put on a diaper in order to read the
financial pages.

Anonymous said...

In Europe this crash will lead to war on the streets.
Its just the way the Europeans are.


And how do you think American's are? Everything we do is a 'war' on something. War on poverty. War on drugs. War on terrorism. etc, etc.

Major difference between Europe and the USA is we have TONS of guns. That's going to make things interesting.

Retailclerk said...

I know i went xmas shopping last evening..stores were empty...employees were just standing around....the layoffs after xmas are going to be massive.
December 19, 2007 2:54 PM
===================================
Eh? They pretend to pay us. We pretend to work.

Anonymous said...

Ha, and we thought the euro was mightier than the dollar.

Anonymous said...

I don't understand.

Why doesn't the government simply allow people to tack on a zero at the end of every paper bill they own. Take it to a notary, stamped as legal tender and be returned.

We instantly are ten times richer and rising prices won't matter in the near term.

If they become a problem again then simply tack on another zero.

Is there a problem or am I missing something here.

:)

Anonymous said...

"I have an idea that will solve this entire problem...mail each and every person in this country a $300,000 dollar check, and this should keep the economy afloat for a good period...Why bail out the bankers, it is us the consumer who will keep the economy going."

Ironically, this is the only way out. Since the problem is solvency, throwing money at the banks to get them to lend it to insolvent borrowers is pointless. If they want to inflate away the debt, they need to direct the inflation toward the insolvent, i.e. the consumer.

Not saying it's a good idea, but it's both a better and more effective solution than what the central banks are trying to do.

Anonymous said...

mail each and every person in this country a $300,000 dollar check

That's what I suggested last year. This way, no single group is bailed out. First, we need to modify the bankruptcy laws so the FB's cannot walk away from their homes. The $300,000 will go towards paying for the failed flip or crackhouse in Compton. The money only goes to US Citizens and legal resident aliens. My plan was $100K for each adult and $40K for each child.

Anonymous said...

Anon said:
‘Major difference between Europe and the USA is we have TONS of guns. That's going to make things interesting.’

There is another distinction between Americans and Europeans.
Americans tend to be good natured and have good hearts.
Europeans are generally very selfish, and cold hearted
Most Americans would help out if they see someone in trouble.
Most Europeans would gleefully push a person in trouble over the cliff, in a soft spoken manor.

Tough times bring out the best in Americans
Tough times bring out the worst in Europeans

Uncle Ben's dangerous kitchen said...

"If they become a problem again then simply tack on another zero.

Is there a problem or am I missing something here."

Sooner or later, you run out of room to tack on extra zeros and then you have to staple two bills together. When that happens, the ATM machines stop working because of the staples and customers can get hurt on the sharp little staple edges.

Love those czech females said...

Europe is starting to panick because the euro continues to increase against the american peso. All their shoppers are flying to the US to buy luxury goods, real estate, and the busineses that export and going to move manufacturing to the US to because its cheaper. That means not only is the price of goods in Europe will continue to rise, but many jobs are going to be lost at the same time. Hell, now Airbust wants to build planes in China and the US. A situation that would of been politically impossible 10 years ago.

Europe is simply reaping what they have sowed. They have been electing socialists for decades and now suprised that their cost of living is skyrocketing.

Anonymous said...

It's free money. Take some.

Last week one of my credit cards wired $50k into my bank account (0% for a year). Spent it already: Bought some gold outside the country.

I've been debt-free for years, but I figure I'll be at least 100k in debt by the end of January. 100% gold outside the USA.

tater said...

The sky is falling! The sky is falling! Oh, wait; it's just raining euros and dollars to pay for a crashing financial system. Well, IF THAT'S the case, the sky really IS falling.

Anonymous said...

Major difference between Europe and the USA is we have TONS of guns.

You don't think the Europeans canget guns if they want them? Look at Bosnia. At least in Europe, only the criminals have guns.

Anonymous said...

Of course, all this money is a short term loan due in two weeks. Now if they get the money back that is another matter but christmas will be over.

January is looking to be fugly.

Chrysler LeBaron - with landau roof said...

"Tough times bring out the best in Americans
Tough times bring out the worst in Europeans"

You couldn't be more right on that one!

Europeans like rounding up certain groups, turning them into scapegoats for a singular cause and them putting them into concentration camps or mass graves.

Americans like rounding up certain groups, turning them into slaves for a singular cause and them putting them into internment camps or prisions.

We are so better than those Euro-trash!

Plus we celebrate celeb. divorces and 16 yr. old pregnancies like nobody's bizness!

Anonymous said...

Europe is simply reaping what they have sowed. They have been electing socialists for decades and now suprised that their cost of living is skyrocketing.

So why is the cost of living skyrocketing only now, if they've been electing socialists for decades? Could it be because the socialists have *lost* major ground to the capitalists in the last 5-10 years?

jim said...

Tacking on extra zero's won't work, nor would helicopter dropping of money. Just check out Zimbabwe . . . where a $750,000 banknote (government paper money) won't buy a loaf of bread.

Bernanke's hyperbolic boast of fed always being able to relieve liquidity crisis with helicopter dropping money won't work at all in real life. Instead of running on banks, people with fast-inflating money will make a run on all stores! At the same time, prices for all goods will go up even faster than the government can print money! Yes, printing money by adding zero to the end of each note is relatively easy, but not as easy as adding two zero's to the price sign! Especially when it takes a stack of paper money to buy a gallon of gas. Of course the credit cards will stop working because the bank would lose tons of money during the "grace period" due to inflation.

The result is that the total purchasing power growth of newly created money is outpaced by the price inflation . . . the the purchasing power aggregate of "money" shrinks instead of expanding. Sure, debts may be wiped off, but you won't be able to buy anything with the money you earn . . . interest will be sky high and house value will be completely destroyed because lending stops. Goods and services with long production cycles will disappear. Economy will grind to a halt as everyone spends his/her time lining up in front of stores that have their shelves emptied out within minutes of opening.