Whats every one"s take on this please.from Daily Reckoning.
--And so all attempts to reflate the system are failing. Leverage is collapsing. Next on the docket is a series of interest rate cuts by Central Banks. They RBA will probably lead off that global parade today at 2:30pm in Sydney.
--How big will the cut be? It will be 50 basis points for sure. But if the RBA really wants to make a splash-and give the banks room to pass on the reduction to borrowers-it will be a full percentage point.
--By the way, did you see in today's Australian that Aussie banks have been borrowing from the Future Fund? The paper reports that, "Three of Australia's largest banks have obtained long-term loans from the Future Fund as cash dried up from other sources." It happened in late March and early April of this year, just after Bear Stearns went belly up.
--"The ANZ, Westpac and National Australia Bank (NAB) tapped funding for up to 10 years." Leaked documents showed that ANZ borrowed $500 million from the Fund. What NAB and Westpac borrowed were not disclosed.
--Now isn't that interesting? A back-door borrowing program at the Future Fund. Or is investment? You decide!
ADY Price at posting:
4.8¢ Sentiment: Hold Disclosure: Held
