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Message: Trading

Re: Trading...from Willie's subscriber service -

in response to by
posted on May 15, 2009 06:53PM

"BULLETIN: An event took place overnight Monday into Tuesday. An overnight inter-bank loan (bank to bank) that started in the west coast United States moved to Hong Kong, then Singapore, finally to London where it failed at 8am their time. It was large, like between $10 and $30 billion. Major ripple effects are certain. Repeats to this event are very likely, since not an isolated situation. My source provided a pure guess that it was the London subsidiary of Citigroup. It was expected that the US Federal Reserve would step in and clean up the mess. The failure was compared to a sewage block, one that would force feces backward into the banking system with a possible explosion soon. Colleagues were dispatched to check for any market evidence of an event, but it is early. Banks are extremely fragile right now, especially the largest banks."

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