ECB Injects $130 Billion to Ease Jittery Markets

http://online.wsj.com/article/SB118666332147492919.html?mod=hps_us_whats_news

Fair use quote:
Mounting fears that the U.S. subprime crisis is spreading to Europe prompted the European Central Bank to loan €94.841 billion ($130.2 billion) in emergency funds to European banks this morning, the first time it has taken this type of action since just after the terrorist attacks of Sept. 11, 2001.

Concern that European banks face growing losses on investments linked to U.S. mortgages shot the euro zone's overnight borrowing rates to 4.7% today, their highest since October 2001 and well above the ECB's benchmark financing rate of 4%.

Basically, the ECB is going to dump every penny they need to keep rates down at 4%.

I'm thinking the new "implode-o-meter" hedge fund meter is going to ratchet up quickly.

This is getting scary. I'm having trouble taking any positive spin seriously. Normally I'm polite and patient; lately I just snicker when J6P goes pro-RE. Am I the only one who feels like a neutron financial bomb has already gone off? Its like walking in the world of the dead; they just do not realize they're in trouble. When some people talk I have to restrain myself from grabbing them and shaking while shouting "Do the math, that cannot happen!"

One of the goals I'm failing at on this blog is to provide job flow information. Alas, my rumor mill has dried up. Its almost like the prospects out there are too scary to contemplate.

For example, Amgen is looking to lay off up in Thousand oaks; this was the front page of the dead tree LA times this morning. Zero mention about their new buildings in Colorado. The fact is they need the best and brightest to develop new medicines. For what they can pay, those people expect to buy matching Volvo's (per the LA times article) and other toys; you cannot do that and live in Thousand Oaks. Besides, they need to cut just to provide parking! (The LA Times article noted they have hired valets to stack park cars.) Whiskey Tango Foxtrot? Something is wrong when hiring valets is cheaper than building parking.

I know Northrop, Lockheed, and Raytheon are moving people out of state; but is it only a trickle? Boeing? Defense groups are laying off. They talk about how the 787 has borrowed 1,000+ engineers from defense programs, but the reality is that most of those engineers either took the Seattle/Wichita/travel job or were to be laid off too. The one exception is their satellite group.

It looks like I'll know something more about job migration in November. Yes... 90 to 120 days from today... It seems all of the defense contractors are waiting for the new fiscal year before announcing anything.

Got popcorn?
Neil