Planetary financial crisis next week around Oct 7?

[Rocky_Shorz]

The Libor-OIS spread hit its seventh consecutive record at 2.94 percentage points Monday before retreating slightly to 2.87 points, after climbing from 2.86 points Friday...

What did you say the breaking point will be?

How low should it be for things to start rolling again?

[Merlyn]

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Originally Posted by Rocky_Shorz

The Libor-OIS spread hit its seventh consecutive record at 2.94 percentage points Monday before retreating slightly to 2.87 points, after climbing from 2.86 points Friday...

What did you say the breaking point will be?

How low should it be for things to start rolling again?

Rocky_Shorz,

I did not say a breaking point and it was Jim Sinclair warning about the LIBOR rate (he did not state what you are asking for). You may want to check his website at http://www.jsmineset.com and today Jim has this posted this morning.

Posted On: Tuesday, October 07, 2008, 9:54:00 AM EST
Fed Enters Off Balance Sheet Credit Default Market
Author: Jim Sinclair

Dear CIGAs,

Today the Fed entered the off balance sheet credit default market and plans to buy unsecured debt instruments in order to cure the problems caused by off balance sheet credit default derivative buying in the form of non-performing failed counterparty credit default derivatives. This appropriately named toxic paper will be purchased to an infinite degree.

The Fed does the same to cure the same.

The Fed actions today declare the bailout bill a non-functioning pile of pork. This infinite production of paper dollars will kill the dollar

Gold will trade at or above $1650.

The Dow is thumbing its nose at the infinite amount of money being dropped by rising 150 points and coming back to even.

Modern day Weimar here we come!

Jim

Weimar refers to thew Germany monetary collapse which was apparently caused by printing and printing money. Thus if the FED continues to pump out money then we might be in a Weimar "hyperinflationary" situation like Zimbawe is in.

So when we look back this action today by the FED might be seen as a big domino falling. Wait and see.


Second Source:
Fed to buy massive amounts of short-term debt
Tuesday October 7, 9:51 am ET
http://biz.yahoo.com/ap/081007/financial_meltdown.html

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