Yes friends, the timing is very bad. Tomorrow India's central bank goes on strike. Talk about bad luck. Do we really believe this is a coincidence? In the latest piece of information concerning a possible hellish tomorrow Tuesday October 21st, we find that India's central bank staff will be on strike the same day we expect a $300-400bn Lehman CDS settlement.
India’s central bank staff to strike
By James Lamont in New Delhi and James Fontanella-Khan in Mumbai
Published: October 17 2008 15:54 | Last updated: October 17 2008 18:22
The timing is unusual to say the least. Buffeted by the worst global financial crisis in generations and with local banks thirsting for cash, the staff at India’s central bank are going on strike.
On Tuesday, a day of mass action will bring the Reserve Bank of India and large parts of the country’s financial system to a halt. For the day, the quick-fire launch of emergency measures to inject liquidity, avoid bank runs and support stressed mutual funds will cease.
http://www.ft.com/cms/s/0/384102a8-9c5b-11dd-a42e-000077b07658.html
As many may realize, tomorrow, the day of the strike, is also the day that many Western counterparties have to make good on their Lehman CDS obligations from its controlled demolition by the Federal Reserve and JP Morgan Chase. Indeed Reggie Middleton's analysis shows that Ambac will be hit particularly hard, taking an approximate $1.5 billion loss to their tangible equity of $1.9 billion. No doubt there will be other unexpected contingencies in this momentous cluster-you-know-what of historic proportions.
Will tomorrow be hell on earth? Or will this turn out to be a wet firecracker? Is Ben Bernanke's beard even real? Or did he fraudulently grow it with Rogaine? Someone please explain what the heck is going on.
Federal Reserve Inflation Commander Ben Bernanke, during his earlier years as a Greatful Dead groupie. Whoa dude, money and credit out of nothing... far out!
3 comments:
Friday marks the 79th anniversary of the day that launched the stock market crash of 1929.
As an unprecedented wave of selling threw the floor of the New York Stock Exchange into pandemonium on a day that became known as Black Thursday, a show of organized support by a coterie of leading bankers halted the panic. But on the following Monday, the market collapsed in a tsunami of selling.
Every intense convulsion of the stock market raises primal fears spawned by the Great Crash of 1929 and the ensuing Great Depression, which dragged on for a full decade and has haunted Americans ever since.
The Panic of 2008 is no exception.
from CNN
right but as to the relevance of this... thursday i think several asian countries are meeting to decide interest rate cuts, this could bolster the dollar, forcing more deleveraging. This could incite fear, panic and good old fashioned superstition in people. '29 here we come!
It's 3:18 on Tuesday, 10/21 and the market is flat. So that must mean that no news has leaked pro or con the Lehman payout. A non-event after all the CB meetings and pledges to keep all major banks worldwide afloat no matter what?
Waiting . . . just a few more minutes.
mg (from Mish's blog)
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