John Howard Has No Control Over Interest Rates in Australia

· by

Posted by Dan Denning on Sep 28th, 2007
Anyone know if the credit crunch is officially over yet? Just checking.The US Fed was busy pumping US$38 billion into the financial system in the last two days. “The Federal Bank of New York added US$6 billion in 14-day repurchase agreements, US$20 billion in 14-day repurchase agreements, US$7 billion in seven-day repurchase agreements and US$5 billion dollars in one-day repos,” according to wire services.

Yep. Everything is probably fine. Enjoy your bread. Take a look at that circus. Look, it’s Elvis! Hey King!

The Fed is attempting a giant credit transfusion. But its patient, the fat, bloated, ten-year old credit bubble is leaking money in all sorts of directions. We reckon the nominal highs on the Dow are merely maintaining the illusion that things are fine.

Read more

Leave a comment