The ECB fails to auction €55bn in fixed term deposits

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Genx87

Lifer
Apr 8, 2002
41,091
513
126
Looks like the markets shit a brick today as well. This is going to get ugly.
 
zephyrprime

zephyrprime

Diamond Member
Feb 18, 2001
7,512
2
81
A failed bond auction is seriously bad. Here comes the second leg of this financial crisis.
 
boomerang

boomerang

Lifer
Jun 19, 2000
18,883
641
126
highland145 said:
Can you explain this for the slow, like me? Thanks.
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Buyers of debt are unwilling to do so, because the rate of return is too low. This will raise the cost of borrowing for governments. This is no surprise. Many knew this day would come.

It's been going on for some time now with our debt here. But through some financial shenanigans and manipulations, it's been kept low key. We've actually been buying our own debt. Think about that one for a while.

The shit is hitting the fan.

Edit: Not a very eloquent description on my part, but I'm sure I'll be corrected if needed.
 
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EagleKeeper

EagleKeeper

Discussion Club Moderator<br>Elite Member
Staff member
Oct 30, 2000
42,589
5
0
GeezerMan said:
But, if we just do stimulate II, by borrowing from someone, that is sure to help small business somehow, even though the last stimulus did little to help small business, which account for 99.7% of all the nation’s employer businesses.



http://web.sba.gov/faqs/faqIndexAll.cfm?areaid=24

http://www.hotindienews.com/2010/06/29/1026987
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As you stated, the majority of the last stimulus went to prop up the local and state government padded payrolls. Very little went into the actual job producing infrastructure.

Now a year later; the same padding will be needed again; because the revenues will not have picked up.

Plus all the additional items that were forced through Congress over the past year will start to have a drain on the economy but fill the government coffers.
 
highland145

highland145

Lifer
Oct 12, 2009
43,973
6,340
136
boomerang said:
Buyers of debt are unwilling to do so, because the rate of return is too low. This will raise the cost of borrowing for governments. This is no surprise. Many knew this day would come.

It's been going on for some time now with our debt here. But through some financial shenanigans and manipulations, it's been kept low key. We've actually been buying our own debt. Think about that one for a while.

The shit is hitting the fan.

Edit: Not a very eloquent description on my part, but I'm sure I'll be corrected if needed.
Click to expand...
Thanks to you and Pokerguy.

Buying our own debt? WTF? Is no one at the helm? I'm speechless.
 
Fern

Fern

Elite Member
Sep 30, 2003
26,907
174
106
I know enough to know that I don't fully understand what the OP's article is talking about.

But in general if governments can't borrow anymore we've got a problem. The USA needs to cash out the special SS treasuries so the SS Admin can make payments to SS beneficiaries. But to do that the USA needs to sell regular treasuries. If they can't do that we've got as big problem (not to mention the need to subsidize federal spending by selling treasuries).

This lack of lenders for the government also indicates that private business will have more trouble finding capital too. That's big trouble when we need growth and more jobs.

I remember back when the stimulous was being discussed many economists were warning that such huge government borrowing would create a liquidity/credit problem for business. There's only so much funding and government soaking it all up would have repercusions. I think they were correct.

Fern
 
werepossum

werepossum

Elite Member
Jul 10, 2006
29,873
463
126
boomerang said:
Buyers of debt are unwilling to do so, because the rate of return is too low. This will raise the cost of borrowing for governments. This is no surprise. Many knew this day would come.

It's been going on for some time now with our debt here. But through some financial shenanigans and manipulations, it's been kept low key. We've actually been buying our own debt. Think about that one for a while.

The shit is hitting the fan.

Edit: Not a very eloquent description on my part, but I'm sure I'll be corrected if needed.
Click to expand...
That is bizarre. I thought when the Federal Reserve first started buying debt that our credit rating would plummet and inflation would go sky high. But so far nothing really seems to have changed and this has been going on for awhile. Really weird, it's like we really can print ourselves out of debt without runaway inflation. Have to admit I don't understand it in the least.

This is Europe in case anyone missed that. I'm assuming they will re-offer at higher interest rates.
 
B

bfdd

Lifer
Feb 3, 2007
13,312
1
0
boomerang said:
Buyers of debt are unwilling to do so, because the rate of return is too low. This will raise the cost of borrowing for governments. This is no surprise. Many knew this day would come.

It's been going on for some time now with our debt here. But through some financial shenanigans and manipulations, it's been kept low key. We've actually been buying our own debt. Think about that one for a while.

The shit is hitting the fan.

Edit: Not a very eloquent description on my part, but I'm sure I'll be corrected if needed.
Click to expand...

This is something that would of happened awhile ago if we didn't try to use smoke and mirrors(bail outs/stimulus) to try and hide it. Now we're worse off than we started. Of course someone is going to come in here and blast me for that and post all these retarded links of how 100 people got jobs or how 1000 people aren't going to lose their homes or how 10,000 people didn't lose their jobs. That shit doesn't matter because they'll all be out of jobs and out of their homes soon enough. We've spent way to much without actually fixing any problems. Fuck our politicians for making the hole sinking the ship bigger.
 
bamacre

bamacre

Lifer
Jul 1, 2004
21,029
2
81
werepossum said:
That is bizarre. I thought when the Federal Reserve first started buying debt that our credit rating would plummet and inflation would go sky high. But so far nothing really seems to have changed and this has been going on for awhile. Really weird, it's like we really can print ourselves out of debt without runaway inflation. Have to admit I don't understand it in the least.
Click to expand...

The dollar has been considered the world's reserve currency. It's kinda been like the new gold. But it won't last, it can't last.
 
rudder

rudder

Lifer
Nov 9, 2000
19,441
86
91
bfdd said:
This is something that would of happened awhile ago if we didn't try to use smoke and mirrors(bail outs/stimulus) to try and hide it. Now we're worse off than we started. Of course someone is going to come in here and blast me for that and post all these retarded links of how 100 people got jobs or how 1000 people aren't going to lose their homes or how 10,000 people didn't lose their jobs. That shit doesn't matter because they'll all be out of jobs and out of their homes soon enough. We've spent way to much without actually fixing any problems. Fuck our politicians for making the hole sinking the ship bigger.
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I know the stimulus has been responsible for the unemployement rate in Tennessee dropping slightly. But these jobs were never funded past 18 months. In 6 months these people will be on the street again. There is just no way to make people realize that the government cannot create jobs... businesses create jobs when they have a need for employees. Soon we will have a crap load of census workers unemployed again. $1.5 trillion deficits will be this nations downfall.
 
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