Jim Willie: Rumoured Overnight Bank Loan Failure (Yellowstone)

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pinecarr's picture
pinecarr
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Jim Willie: Rumoured Overnight Bank Loan Failure (Yellowstone)

I just caught this article on www.marketskeptics.com.  Eric deCarbonnel says Jim Willie sent out an alert that he heard a rumor, from what he considers is a reliable source, that there was an overnight bank loan failure last night.  It is rumoured to have been Yellowstone, for $3B.  I am not sure of all the implications if true.  Here's the post:

 

Saturday, May 16, 2009

 

 

The Market Oracle reports that major overnight bank loan failure.

(emphasis mine) [my comment]

Breaking News: Imminent Big Bank Failure on Overnight Bank Loan Failure
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

so be on the lookout
in February, this source said that in May June timeframe, foreign creditors will put the screws to the US bankers, who are recognized as totally corrupt [very interesting]
foreigner big bankers want to remove some power levers from US control

QUOTE ME IF YOU WISH
my source remains anonymous
/ jim

Harvey Organ’s blog reports more about this failed overnight loan.

The failed overnight loan that was stopped in London, turned out to be Yellowstone and it was stopped at only 3 billion dollars. It seems cash is diasappearing down a sinkhole:

Jim Willie on that failed bank trade…

thanks, to you and your friend Greg
the failed inter-bank trade that started in US, went to Hong Kong, then Singapore, and got hung up in London has been identified.
it was Yellowstone and it was $3 billion
I had guessed $10 to $30 billion
if any further details, pass them on
jim

My reaction: I have no way of verifying this story, so take it with a grain of salt. That said, I too believe that the US financial system will begin its final collapse in the “May June timeframe”.

 

 
 

Posted by Eric deCarbonnel at 2:24 PM 0 comments

pinecarr's picture
pinecarr
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Re: Jim Willie: Rumoured Overnight Bank Loan Failure ...

Hi Folks-

   One correction.  I stated that the bank loan failure happened "last night". I should have paid better attention to the date of the actual article that was being quoted, which was Wednesday 5/13/09.  So "last night" was relative to that date (5/13/09), not to today's date (5/16/09).

   I did a search on the web to see if I could find anything on it, but found very little.  www.marketoracle.com has a copy of the same article marketskeptics.com quotes at http://www.marketoracle.co.uk/Article10639.html..  Curious! 

SamLinder's picture
SamLinder
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Re: Jim Willie: Rumoured Overnight Bank Loan Failure ...

OK, pinecarr, fascinating story. You certainly got my attention!

My only problem is that I don't understand what you are telling me. Would you please elaborate for me what is meant by an overnight loan being stopped? Thanks.

FireJack's picture
FireJack
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Re: Jim Willie: Rumoured Overnight Bank Loan Failure ...

I'm more interested in this:

My reaction: I have no way of verifying this story, so take it with a grain of salt. That said, I too believe that the US financial system will begin its final collapse in the “May June timeframe”."

 

What, already? What would a final collapse be?

Nichoman's picture
Nichoman
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Posts: 422
Re: Jim Willie: Rumoured Overnight Bank Loan Failure ...

Interesting...

Will post this from another thread today that happened to our family past several days...

Coincidence?

 

Nichoman

************************************************************************************************************

If one believes "Money Speaks"...here's a tidbit...

For first time ever in over 50 years...were not able to pre-purchase petroleum for planting next year.

Either individual or as in a large group of successful farmers.

Not financed...but offered cash.  So how can credit crisis explain this?

Peculiar.   We think so. 

Food shortages almost pre-planned.  Hungry people don't act irrationally...course not.

   

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
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Posts: 2246
Re: Jim Willie: Rumoured Overnight Bank Loan Failure ...

OK, pinecarr, fascinating story. You certainly got my attention!

My only problem is that I don't understand what you are telling me. Would you please elaborate for me what is meant by an overnight loan being stopped? Thanks.

__________________

 

Sam....

 

Hi Sam-

   I wish I knew!  That was one of my reasons for posting the story, to try to get help from some of the people here on site re what the meaning and implications of such a "failed bank loan"/"stopped bank loan" are, if true.  Does it mean that the bank couldn't acquire the requested $3B (meaning $/credit isn't flowing)?  I don't know.  I hope people here will help us understand what it means better.  I just know the story made my "spidey senses" tingle big time, as a potentially important news development that may be an indicator of things deteriorating in the global economy.

   best,

   pinecarr

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pinecarr
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Re: Jim Willie: Rumoured Overnight Bank Loan Failure ...

FireJack wrote:

I'm more interested in this:

My reaction: I have no way of verifying this story, so take it with a grain of salt. That said, I too believe that the US financial system will begin its final collapse in the “May June timeframe”."

 

What, already? What would a final collapse be?

Hi Firejack-

   That quote you pointed out is Eric deCarbonnel's commentary on the cited articles, so that is Eric stating his opinion.  He is at www.marketskeptics.com. I know Eric takes comments on his articles (you'll find there is a stream of articles ranging from newer to older, so this one will start to sink lower in that queue over time).  And he does respond to questions/comments there sometimes.  So you could try posting a comment to the article there, and asking him your questions.  I'd be curious to hear his response as well!

   Yeah, Eric's belief that "the US financial system will begin its final collapse in the "May June timefrane"." got my attention too!! 

   best,

   pinecarr

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
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Posts: 2246
Re: Jim Willie: Rumoured Overnight Bank Loan Failure ...

Wow, Nichoman, that's wild!  I wonder if those people were looking out for your relatives' interests.  It sure would've been decent of them if they were. 

That aside, it's unsettling to think about why it happened.  An anticipated shortage in petroleum next year?  Distrust of (or too much perceived risk in) the supplier?  Or, as you wondered, a move motivated by the desire to achieve some other nefarious goal, such as a planned shortage in the food supply?  Geez, you hate to even imagine that people could be that evil!  But given all I've learned to be true that I never believed to be true in the past, my mind is more open to weighing the evidence for a much larger range of alternative explanations now.

I'll be very interested to follow the thread you start, discussing your experience above, to hear what others have to say!

best,

pinecarr

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