| Shares fall globally on new fears for banks
Banks' cashflow concerns are also continuing to push up money market rates. Two and three-month dollar and sterling rates reached their highest levels in two months amid growing concerns about Northern Rock – the troubled UK lender – and that other financial institutions would face a tough time securing funding for their balance sheets at the end of December, when their financial year also ends. A sense that the US Federal Reserve would be forced to ease policy again in December to relieve the stress on the banks took the yield on the two-year Treasury note down 13.5 basis points to 3.20 per cent. The Goldman note exacerbated jitters in European markets already unnerved by the announcement from Swiss Re, the world's biggest reinsurer, of a SFr1.2bn ($1.08bn) writedown of securities linked to subprime mortgages.
Anatomy of a meltdown
The problems in the housing market were supposed to stay there. Perhaps they would be a nightmare for some homeowners, but not for the economy in general.
Or at least that's what most of Wall Street was espousing until July. Yet, in the last eight weeks, it has become clear that their analysis was wrong.
Fear has brought to an end the easy-money conditions that homeowners and businesses have enjoyed for the last few years. Temporarily, at least, there is a credit crunch. Banks and other lenders are reluctant to make loans, and homeowners and businesses that want, or need, to borrow may have to pay a dear price to get money.
.
Initiatives target Knox govt.
Can you imagine an elementary school teacher or any rank-and-file deputy or janitor being allowed to take time off for commission meetings? No! Only over-paid, salaried administrators can really do that. What responsibilities does Tank Strickland, for instance, have with the City of Knoxville that are so fluid that he can sit in court or attend commission meetings on the clock. Not to pick on Tank, but there are apparently many such double government paychecks. Let the people VOTE on the amendments. .
|
