August 2007 was the month I started this blog and this adventure. In retrospect, what a time to begin. But I suppose if you can manage through these type of epic financial times that we've seen, where government rescue and central bank action mean more than corporate earnings.... and Sunday evening announcements of bailout and mergers became the norm, most years ahead will seem like cake.
August 2007 also marked the first 'rescue' by our global central bankers. The irony of the timing should not be lost as speculators the world over are on bended knee, praying for The Godfather of Easy Money - Ben Bernanke, to bestow them with yet another handout/freebie/bailout/giveaway at 2:15 PM Tuesday. Because surely just one more hit of drugs will do the trick. And if not, there is always December 2010.... or March 2011.... or ... well somehow I'm sure I'll be doing a similar post a year from now celebrating the 4 year anniversary as speculators the world over have their hands out to Ben Bernanke asking for an extension, continuation or indeed a new plan to save us.
Three years ago today, the European Central Bank provided an unprecedented 95 billion euros ($126 billion) as the credit crisis made commercial banks unwilling to lend to each other. The unexpectedly steep drop in U.S. nonfarm payrolls reported last week, strengthened speculation that the Fed may announce more stimulus measures to boost growth. “It’s a sign of how long this crisis has been reverberating around that we now enter a week that could see fresh quantitative easing from the Fed,” Jim Reid, a strategist at Deutsche Bank AG in London, wrote in a report.
$126 billion from a central bank seems so quaint nowadays, doesn't it? Pocket change in the new paradigm.