Credit markets "seizing up"?

From an article on MSNBC:

Major central banks swept in to calm credit markets spooked by mounting losses on Thursday and injected cash to prevent the financial system from seizing up.The European Central Bank pumped a record 94.8 billion euros ($130.6 billion) into Europe’s money markets as banks scrambled for cash after France’s biggest listed bank, BNP Paribas, froze withdrawals from three funds. It cited U.S. subprime mortgage market problems.

This was the largest amount of money the ECB has ever injected into the markets in a single operation.

It routinely holds quick market operations when there is a cash imbalance but not since after the U.S. terror attacks in 2001 has the size neared Thursday’s level.

So much for subprime credit problems being contained to the US housing market.. Are we looking at a temporary psychological issue here, or are we looking at the start of credit market thats much tighter than the one we have today? And if credit is harder to come by and more expensive to get what does that mean for high priced real estate markets like Vancouver?

46 Comments
newest
oldest most voted
Inline Feedbacks
View all comments
Akhen
Akhen
13 years ago

It's not on the local media outlet as the effects hasn't fully been felt on the streets. That's why by the time it hit the streets, market has already established the trend downward.It's way too late to protect any gains by then. It' simply protection of capital at that point.Hope you're on the right side of the market … at least mentally!

beta
beta
13 years ago

Funny how Global news didn't mention any of these events on the 6:00 news. It was like news from the Bizarro universe. Events are taking place that will have real effect on every viewer's lives, and they instead cover cars — the business equivalent of a 'kitten in a tree' story.

exvancouverite
exvancouverite
13 years ago

** Funny how Global news didn't mention any of these events on the 6:00 news. The top business story was a comparison between Buick and Lexus automobiles. **Yeah, we caught that, too. And there was the fade out to commercial…"here are today's market numbers…"There was a scroll of red numbers but no commentary.Funny how that works.

the pope
the pope
13 years ago

VHB: nope. No WAY could anyone have seen that coming. NO ONE thought the US market would collapse like that and NOBODY could have predicted the subprime collapse and its fallout on the wider credit markets.Totally out of left field eh?

Cecil
Cecil
13 years ago

Funny how Global news didn't mention any of these events on the 6:00 news. The top business story was a comparison between Buick and Lexus automobiles.That was followed by "brought to you by Remax…no one sells more real estate than Remax". What a joke.

blueskies
blueskies
13 years ago

nighty nite satv beer: Unibroue "La Fin Du Mond"music: Led Zep "Your Time is Gonna Come"blog: VHB… where are ya?

satv
satv
13 years ago

thanx blueskies nice to meet you at vancouvers hot hot site vancouvercondo.info good night and you can countinue to post I will try to get back to you tomo.

blueskies
blueskies
13 years ago

any RE holding now is toxic! live in or rent out or to die for. long term depreciating asset class sell now!!

satv
satv
13 years ago

THE CENTER OF GRAVITY is very strong for me. I am in win,win situation all over because multi unit holder at the end if you win I can compressed my units to save my self.and specialy those are on absolutely perfect location where bubble change his direction because bubble is short of length.

blueskies
blueskies
13 years ago

OTOH if you are not scared then you don't really appreciate the gravity of the situation…..

satv
satv
13 years ago

definitley don't panic be confident, if you buying roof for your self no matter where that goes you have bought that on current market value. then after world goes down and up who cares reduce your debt as you go,and enjoy your life.

satv
satv
13 years ago

Sub-prime and consequences estimated to be 40 to 50 times LTCM and 'its'.No easy bailout here. rentha that is good one,but I am not sure that money government and banks pumped in is that a lottery for loser? because I never had problem with credit so I do not follow sp to much.

blueskies
blueskies
13 years ago

fascinating watching this… almost deja vu from 2 year old blog entries don't panic don't panic don't panic don't panic…….

satv
satv
13 years ago

bleuskiesyou might know me I am one of you but little bit better position.so our situation takes us to diffrent direction.if i was you might have, had same feeling because when peak is scary it is possible to assume fall that stop us to be confident about it are you schdule for 6 tomo.if you getting late tell me anytime,or I will assume anytime.

rentah
rentah
13 years ago

Sub-prime and consequences estimated to be 40 to 50 times LTCM and 'its'.No easy bailout here.

blueskies
blueskies
13 years ago

uh… another rule: if you find yourself in a hole…stop digging….

satv
satv
13 years ago

and most important is that house stand on ground, I mean they are down to earth by nature, so hardly can fall because they can not dig hole unless attacked by force.

satv
satv
13 years ago

rules:buy low sell highwhat goes up must come downblueskies I am not agree :housing have strength to colide with some part of nature unless there is tsunami,hurricane etc.otherwise history teach us lots.when there is original holder without subprime issues.

blueskies
blueskies
13 years ago

rules: buy low sell highwhat goes up must come downif it sounds too good to be true, it isa fool and their money are soon parted…. and there is one born every minuteany of the above are broken at your own peril…. plus if there was no bad luck you wouldn't have any country and western music

Clarke
Clarke
13 years ago

I think this may finally be the tipping point. Those of us predicting that prices would fall in 2008 may be calling it a bit late.

satv
satv
13 years ago

anyway blueskies nice to find you herecan you explain,if you were waiting for crash since long time like inspired by vhb,or with your own wish.blueskiesit doesn't matter bear or bull after all we are human not animal, what we got here is our opinions.I don't mind even if you have to knock me down in arguments.so please do not feel hesitate speak out what ever.

satv
satv
13 years ago

the pope this user wear my user name which say"satv said… Sometime I sound crazy, because I loose so much sleep over tax issue 8/9/07 9:03 PM the pope I file abuse I don't know what is your policy and procedure.

satv
satv
13 years ago

Sometime I sound crazy, because I loose so much sleep over tax issue

Damir
Damir
13 years ago

I thought when LTCM collapsed, it was in the single digit billion range, right?You're off by about three orders of magnitude. All-in LTCM was right around the trillion dollar mark – although we're unlikely to ever know for sure because the positions were unwound behind closed doors.

blueskies
blueskies
13 years ago

satv yes from the westside i b a renter bear gonna be a bullish vulture in due course after today i am declaring myself"scared shitless"…. so there