>The plan by fed to issue Fbills to buy Tbills thereby print money was discussed, but never implemented.
Exactly my point, it is a threat ... but had the required effect ...
>Banks will not be in a hurry to lend.
Yes they will ... they need deals and margin. In the short term, they will be driven by fear - but in the medium term, they need to be open for business.
December '08 saw some reductions in LIBOR - the interbank loans are loosening up.
January '09 saw the beginning of recovery in Senior Loan and Corporate bond markets. We are now seeing bonds replacing equities in large funds.
I think July will mark the end of dominant deflationary sentiment.
BNB
babcock & brown limited
