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
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
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
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".