In a letter to policymakers gathering next week in Washington for a meeting of the International Monetary and Finance Committee (IMFC), the leading institutions called for central bankers to take fresh steps to improve liquidity. FT
So the world's leading financial institutions are asking financial authorities to:
- take actions to help restore confidence among consumers, businesses and investors
- provide greater clarity about... their role as lenders of last resort in time of crisis
- expand the range of acceptable collateral and increase the availability of “cross-border collateralisation” so banks can trade in a wider variety of risky assets in return for short-term loans to finance their activities and clients
“In financial markets, the appropriate approach is not necessarily more regulation but better supervision in certain areas.” -lol
My translation is that the big guns in finance are in over their heads and they can't go forward unless the financial authorities shout from the rooftops that they will inflate in all ways possible, no more even hinting of being tight with money, requiring reasonable collateral, or expecting to be repaid in the near future.
That certainly leaves me with a warm fuzzy feeling about the state of international finance, how about you?