Stock-Markets / Credit Crisis 2009
May 13, 2009 - 10:19 AM
By: Nadeem_Walayat
Jim Willie of the Hat trick Newsletter has just sent an urgent message of a potential imminent big bank failure that would be expected to hit the financial markets hard - message as follows -
just got word from a reliable source with an excellent track record
he calls me every several weeks when he has something very critical to share
he wants me to put the word out and to see what comes back to confirm or add to the story
an extremely large overnight bank transaction loan failed last night, gathering major attention
it started in US west coast, went to Hong Kong, then Singapore, then London
it failed in London, by that is meant no return was given on the overnight loan
he guessed the size was something like $10 to $30 billion
he suspected (without much direct evidence) that it was Citigroup
he believes the failing bank is a London subsidiary for a giant US-based bank
he likened it to a plumbing blockage with extreme backup consequences
he expects a ripple effect to cause shock waves, or a flood of sewage
we wondered if it could have Commercial Paper consequences, since often used in overnights
he has five expert friends watching for specific market reactions, like LIBOR