{"id":199336,"date":"2007-08-10T05:19:00","date_gmt":"2007-08-10T10:19:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/08\/10\/a-collection-economic-disaster-news\/"},"modified":"2007-08-10T05:19:00","modified_gmt":"2007-08-10T10:19:00","slug":"a-collection-economic-disaster-news","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2007\/08\/10\/a-collection-economic-disaster-news\/","title":{"rendered":"A Collection Economic Disaster News"},"content":{"rendered":"<p><a href=\"http:\/\/www.bloomberg.com\/apps\/news?pid=20601087&amp;sid=a6tpCZjXjfes&amp;refer=home\">Home sales tumble in response to credit crunch<\/a>.  Just so you know, that&#8217;s what the National Association of Realtors is saying, so that&#8217;s the <span style=\"font-weight:bold;\">sunniest possible<\/span> outlook.<\/p>\n<p>Stocks tanked yesterday because a <a href=\"http:\/\/news.yahoo.com\/s\/ap\/20070809\/ap_on_bi_st_ma_re\/wall_street_256\"><span style=\"font-variant: small-caps;\">French<\/span> Bank said that it had to freeze funds for lack of liquidity<\/a>.  Basically the meltdown is going global, and the securities that they hold are illiquid.  They are not normally bought and sold, so there is no market for them.<\/p>\n<p>When Bear Stearns funds went out for sale, they were getting less than 10 cents on the dollar as offers.<\/p>\n<p>The <a href=\"http:\/\/biz.yahoo.com\/ap\/070809\/europe_ecb_liquidity.html?.v=3\">European Currency Board (ECB) and the Federal Reserve have injected billions in liquidity to prevent a collapse<\/a>.  While this is not an extraordinary action for the Fed, this resembles things like the LTCM bailout, it is for the ECB.<\/p>\n<p>The ECB&#8217;s scope is far narrower than that of the Fed.  They are not charged with anything but controlling inflation, at German insistence (there are still a few Germans alive remember needing a wheelbarrow of money to buy a loaf of bread).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Home sales tumble in response to credit crunch. Just so you know, that&#8217;s what the National Association of Realtors is saying, so that&#8217;s the sunniest possible outlook. Stocks tanked yesterday because a French Bank said that it had to freeze funds for lack of liquidity. Basically the meltdown is going global, and the securities that &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1261,1080,973,1265],"tags":[],"class_list":["post-199336","post","type-post","status-publish","format-standard","hentry","category-bubble","category-currency","category-economy","category-housing-crash"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199336"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=199336"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/199336\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=199336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=199336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=199336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}