I didn't understand a single word of that........

On Tue, Sep 30, 2008 at 1:46 PM, Gruss Gott <[EMAIL PROTECTED]> wrote:

> Sept. 30 (Bloomberg) -- The euro fell the most against the dollar
> since the introduction of the shared currency in 1999
>
> Banks are being squeezed amid a surge in borrowing costs as lenders
> hoard cash on concern more financial institutions will fail.
>
> The London interbank offered rate, or Libor, that banks charge each
> other for such loans in dollars climbed 431 basis points to an
> all-time high of 6.88 percent, the British Bankers' Association said.
>
> [many US ARMs are fixed to the Libor!  Anarchy!]
>
> ``There's a dollar shortage globally,'' said Alan Ruskin, head of
> international currency strategy in North America at RBS Greenwich
> Capital Markets Inc. in Greenwich, Connecticut. ``Demand for liquidity
> trumps the fundamentals. Fundamentally, the U.S. is awful, and Europe
> is awful. Fundamentals are irrelevant today.''
>
> The price on one-year cross-currency basis swaps between yen and
> dollars reached minus 70 basis points, the biggest effective premium
> for dollar funding since Bloomberg began tracking the data in 1997.
> The highest reached in 1998, during the Asian banking crisis was minus
> 38.5 basis points in October 1998, according to Bloomberg data.
>
> ``There is a mad scramble for U.S. dollar funding demand from a global
> U.S. dollar-based financial system,'' said Claudio Piron,
> Singapore-based head of Asian currency research at JPMorgan Chase & Co
>
> 

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