[Kosh]

http://www.reuters.com/article/newsOne/idUSTRE49F97920081017

NEW YORK (Reuters) - Financial institutions ran to their lender of last resort for record amounts of cash in the latest week, under extreme pressure from the worst global financial crisis in a generation, Federal Reserve data showed on Thursday.

Banks and dealers' overall direct borrowings from the Fed averaged a record $437.53 billion per day in the week ended October 15, topping the previous week's $420.16 billion per day.

Some analysts are concerned that banks' dependence on Fed lending might become long term and difficult to change.

"The banking system is going to become addicted to this very cheap money. Unwinding it will be very difficult," said Howard Simons, strategist with Bianco Research in Chicago.

"We have effectively allowed the central banks to disintermediate the banking system. Why would I want to borrow from you if I could do it with the central bank, because they can always print it up and say 'here'...and they are in the business now of making sure I stay in business," Simons said.

So what will be the consequences, both long and short term from this?

[BloodEagle]

A few topics back, I mentioned that I was going to start collecting bottlecaps. 

[Colonol Dekker]

"Global Third-worldisation" TM and eventual mass-redundancy, or some sort of OCP/Tri-Optimum/NorWeb super company will just buy everything on the planet and we'll all cease being citizens and take on the title "employees"

[Ghostavo]

I for one, welcome our new corporate overlords.

[Roanoke]

"Global Third-worldisation" TM and eventual mass-redundancy, or some sort of OCP/Tri-Optimum/NorWeb super company will just buy everything on the planet and we'll all cease being citizens and take on the title "employees"

You mean the NorWeb Federation. Hunting down non-payers, even in deep space.

[Colonol Dekker]

With light speed fighters exactly always finish your sausages people.

[Roanoke]

and don't leave the bathroom light on when you go out 

[Colonol Dekker]

My bank account is pretty similar to said guys before he started his journey . . . At the moment
 
Back on topic, it'll take a while months, maybe years. But the economic climate will stabilise, the state in which it settles will depend on how financial consumers act in the now though.

[Solatar]

You can't fix stupid, and panic stricken people are stupid (they pull money out in case the economy fails, which then CAUSES it to fail).

Pictures of breadlines on Time Magazine's cover don't do much to help either.Sometimes  I think the media WANTS the economy to tank.

It's amazing to me (but not unpredictable, sadly) that in the face of an economic downturn everybody is still trying to think about how they can benefit from the situation. Banks are abusing the help that's given them, people are selling all their stocks, etc.

[Colonol Dekker]

You can't fix stupid, and panic stricken people are stupid (they pull money out in case the economy fails, which then CAUSES it to fail).

Pictures of breadlines on Time Magazine's cover don't do much to help either.Sometimes  I think the media WANTS the economy to tank.

It's amazing to me (but not unpredictable, sadly) that in the face of an economic downturn everybody is still trying to think about how they can benefit from the situation. Banks are abusing the help that's given them, people are selling all their stocks, etc.

But the majority of high-cash outgoings are caused by mortgage lenders, my last firm used to BUY 10million a month from the bank of england in order to lend it, i won't go into the finer details of how and why it's done like that. It just is. The mortgage crisis which i was privvy to last january had a major impact on global financial waters. The ripples of which are only just being seen by public eye.

[Roanoke]

Funny how the stockmarkets plummet because the traders fear a recession, a recession caused by lack of positive stock market trading.

Anyone else feel like grabbing these guys and banging their heads together ?

[Nuke]

i know my brother bought another house, after he defaulted on the first one he tried to buy. oh and he declared bankruptcy a couple years ago. how did he qualify for another mortgage? were talking about a guy who is over a hundred thousand bucks in debt, and they're still giving the bastard credit. banks need to take a better look at a persons financial history before issuing credit cards, and loans. some people are just too stupid to have access to such things.

[Sarafan]

Funny how the stockmarkets plummet because the traders fear a recession, a recession caused by lack of positive stock market trading.

Anyone else feel like grabbing these guys and banging their heads together ?

Correction:

Funny how the stockmarkets plummet because the traders fear a recession, a recession caused by lack of positive stock market trading.

Anyone else feel like grabbing these guys and hanging them together ?

 

I would.

[Kosh]

Funny how the stockmarkets plummet because the traders fear a recession, a recession caused by lack of positive stock market trading.

Anyone else feel like grabbing these guys and banging their heads together ?

The recession isn't caused by them, it's caused by too much bad debt. Economies based on debt always fail.

i know my brother bought another house, after he defaulted on the first one he tried to buy. oh and he declared bankruptcy a couple years ago. how did he qualify for another mortgage? were talking about a guy who is over a hundred thousand bucks in debt, and they're still giving the bastard credit. banks need to take a better look at a persons financial history before issuing credit cards, and loans. some people are just too stupid to have access to such things.

How long ago did he get his latest loan?

[Colonol Dekker]

I'm assuming june to august, that's when the mortgage market started to be less discerning, it's all well and good being picky about who you lend to. But no customers means no money and no money means no profit after balancing expendature.

[Nuke]

Funny how the stockmarkets plummet because the traders fear a recession, a recession caused by lack of positive stock market trading.

Anyone else feel like grabbing these guys and banging their heads together ?

The recession isn't caused by them, it's caused by too much bad debt. Economies based on debt always fail.

i know my brother bought another house, after he defaulted on the first one he tried to buy. oh and he declared bankruptcy a couple years ago. how did he qualify for another mortgage? were talking about a guy who is over a hundred thousand bucks in debt, and they're still giving the bastard credit. banks need to take a better look at a persons financial history before issuing credit cards, and loans. some people are just too stupid to have access to such things.

How long ago did he get his latest loan?

a couple weeks

[Kosh]

****, and which bank did he get it from?

[Nuke]

i dont know, hopefully not mine