Quote:
The artificial fixing of the CIBOR interest rate outside the authorities control is over! Secretary for Business and Growth Ole Sohn cuts through and announces a public inspection of the much criticized rate fixing:
“There is a need for public control so the rate fixing is transparent.”
And:
Ole Sohn maintains that the announced report on the possibilities for an investigation started for september, continues!
Comment:
It is not just my poor English – the original wasn’t written or spoken in any known language!
It seems like the government, the banks and others have been hit by a speeding bus! Barclays PLC (LON:BARC) (NYSE:BCS) leaving the CIBOR is probably just a result, not a course!
House mortgage with negative interest?
Quote:
“We cannot exclude that the housing interest will be negative – not any more. That is why we are sitting and looking into the problem at the moment. Our systems must be reprogrammed to cater for that eventuality. We’ve never tried it before!” Says chief economist Christian Hilligsøe Heinig Realkredit Danmark [a Danske Bank A/S (CPH:DANSKE) (PINK:DNSKY) subsidiary].
Comment:
Same illiteracy problem.
He hasn’t clew what he is talking about! We are not talking confusion – this is raw panic! They can’t raise lending rate – as their selective manipulation tool – the CIBOR is taken from them. They can’t press borrowing rate – the deposit rate in the CB IS already negative – and it hasn’t influenced banks deposits in the CB the least – on the contrary July 31st showed yet another growth in deposit of 2 bio. EUR (in a country the size of Vermont???). If Danske Bank lowers the deposit rate further – then depositors will demand their money immediately – in cash!
If a bank can’t go below 0% interest in deposit and above -½% in lending they are in deep trouble!
The interesting part is whether the CB lending rate will go up – if it doesn’t we are talking state subsidies – which is a cost that has not been condoned by parliament.
The next couple of days are liable to be very interest interesting in doing nothing – excuse the puns.
This must be counted as the most predictable calamity in financial history.
