90 seconds at 9 am: Central banks preparing for coordinated emergency intervention as Euro-crisis deepens ahead of Greek elections; Dow rises 1.2% on QE III hopes; NZ$ at 78.2 USc

Here's my summary of the key news overnight in 90 seconds at 9 am, including news from Reuters that the world's central banks are preparing to intervene in a coordinated way to stabilise financial markets early next week after Greek elections are held.

G20 officials told Reuters central banks are ready to intervene in markets to provide emergency supplies of US dollars and cash to ensure credit lines remain open. An emergency meeting of ministers from the world's 7 largest economies could be held on Monday or Tuesday in Los Cabos in Mexico, depending on the severity of any market response to the Greek elections. Central bank governors would join the meeting by phone, Reuters reported.

The coordinated intervention could include increased swap lines from central banks for US dollars and special lending from central banks to banks.

Fears deepened over the Euro-zone debt crisis overnight as reports of heavy withdrawals of deposits from Greek banks came as bond yields spiked in Spain to unsustainable levels.

Britain acted overnight to flood its banking system with cash to try to free up credit, Reuters reported. The Bank of England announced it would provide cheap long term loans to encourage them to lend to businesses and consumers and Governor Mervyn King indicated the bank could print more money to buy government bonds. The FT.com reported the plan coordinated by the Bank of England and the UK Treasury was a 100 billion pound programme of emergency loans to banks.

Elswhere, the Swiss National Bank threatened to impose capital controls to staunch the flood of funds into Swiss francs as European investors flee large parts of the Eurozone. See more here at Reuters.

Spain and Italy said overnight they were planning new measures to try to regain the confidence of markets as their bond yields rose sharply. The Spanish 10 year bond yield rose over 7%, which was the level that forced Greece, Portugal and Ireland to ask for bailouts. See more here at Reuters.

However, the Dow rallied more than 1% overnight after fresh economic figures reinforced hopes the the US Federal Reserve would further ease monetary policy next when it meets next Wednesday. There are hopes the US Federal Reserve may activate a third round of Quantitative Easing or money printing to buy government bonds.

Jobless claims figures rose 6,000 last week to 386,000 last week, disppointing economists who had expected a drop. US consumer prices also fell 0.3% last month, their biggest fall since December 2008.

In China, Deutsche Bank and Credit Suisse said China's economic growth is likely to fall below 8% and could prove a drag, rather than a boost, to the global economy.

The New Zealand dollar rose to 78.2 USc on talk the US Federal Reserve would engage in more money printing, therefore devaluing the US dollar vs other currencies that are not printing money.

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Bernard - I will summarise your 90 at 9 today - "Gov'ts and Central Banks throughout the world haven't a clue how to solve the current financial crisis, so they will continue their failed policies of increasing debt further and printing more money".

The problem is not that they have no clue its that they dont want to do what needs to be done or on the scale it needs. So its not printing isnt working its just its too small, the Obama plan needed to be in excess of $1.2trillion, it was half that and mis-allocated. Even if they printed the banks are the problem and the debt they hold....that needs to be fixed.
What needs to be done is a FDR job,
1) Friday night, close the ALL the banks in the USA, Japan, Chian and EU (G20 at least)...and nationlise them....over the weekend.
2) Close the share markets and leave them closed...they dont matter day to day. Ditto futures markets and similar.
3) Commit to spending $5+ trillion of 10 year debt to go to Green technologies....ie infrastructure spending....
4) Put the banksters in jail and throw away the keys, of cheaper, hang them.
No one will do any of the above....or at least on the scale needed, so its going to blow up.
or what?
Lets see your ideas...

2) Close the share markets and leave them closed...they dont matter day to day. Ditto futures markets and similar.
4) Put the banksters in jail and throw away the keys, of cheaper, hang them.
Steven, I fear you do not understand you are visiting a dicussion forum dedicated to usury - the tool of bankers.
Please cease and desist from maligning the second oldest profession in the world and issuing death threats against those who make their living from this despicable, but at the moment extremely profitable engagement, as interest rates fall through the floor and bond prices trend parabolically higher. Makes trading houses seem positively pedestrian.
There are other discussion groups you could troll

LOL....I suppose the Q to your post is, define treason.
If its knowingly and actively detroying or usurping the Nation you belong to to the extend its survival is at stake, for your own and others gain well in WW2 the British used to hang Spies....
Now do I see NZ bankers in the above category, no and I hope Im right. If a "death threat" is hauling such parties before a court of law to be judged by their peers....ho  hum.....
I suppose for the record I should say I do not in anyway advovcate lynching or shooting them....ie acting outside of the law....

I have followed your post steven.
This is probaly one of the most dsisustiging posts you have ever put up....
What you are suggestinq is sudo communisiom/fashism taking over of the world
with a little bit of murder.............
You are a nut!!!!!

No Im saying that right now do what FDR did....(wasnt aware he was a communist, or a nut)  Really its now time for totally drastic action before it goes totally out of control, no ifs no buts.   The alterntaive is a Great Depression mk II where the share markets plunges to 10% of their present value, property ditto and we face 30 years of grinding out of this screw up...and 25%+ un-employemnt....I mean think of GBH, who will emply him?
What I will add is this is as per FDR a temp measure....if you bothered to understand my posts then I am anti-communist and anti-fascist...Im also anti-extremist and anti-fundie that especially includes Libertarians.
I odnt advocate this as a permanent measure, quite the opposite....it has to be as short as possible...
In terms of murder, no, treason and following due process of law at all times.  Now I woudlnt be shocked if a few US banksters dont get shot or lynched in the next few years.....or even Pollies.....and innocents...if it goes totally out of control....
We have seen riots and lootings, lynchings are how much beyond that? and revolutions? really we play with fire now while dipped in petrol...its dumb.
If my choice is between draconian civl emergency powers or anarchy, yes I choose the former.

..... tsk tsk ! Once again , steven , you have chosen to obscificate your true intentions wiith a smatterring of " leftie "  expositions ........... Chairman MAO  did the same when he invited opposing views to his ideological dogma ..... then under the guise of free & democratic speech , had the dissidents rounded up & either executed on the spot , or sent to labour camps & starved or beaten to death ......
mark.s. is correct , you are nasty , and you are out of your cotton-picking-freaking mind .......
Those of us whom you label as " NEO-CON " liberals , are the ones who sincerely care about individuals and the future of mankind ..........
..... it is you & PDF whom detest mankind , and wish us all to disappear from the planet .....
You two are evil !

Come on GBH
That is a little on the gloomier side of life isn't it?

..... no , not really .......

I like it Steven....What  I think your point is/was that clearly  others who are a little to conservative and PC in their thinking missed is WE NEED some HONESTY about our global monetary system.
It can't be fixed because..........it's seriously flawed. It's a ponzi scheme. Anyone else other than banks and governments WOULD be in jail by now for running one.

So your solution is to give the government ownership of everything and kill everyone that disagrees?  Hmm I think thats been tried before...
What we need are new solutions, not tired old socialist rantings that lead to poverty and misery.

That isnt what I said....but I find it interesting that you think thats what I said....
Funny thing but we have had 30~40 years of right wing rantings and their voodoo economics mainly due to a libertarian by the name of Greenspan and look at where we are at, staring at 20~30 years of poverty and misery.

Bernard ...talk of QE3...? just who is doing the talking..? forex markets for sure....ailing stock  markets for sure...... but the old "Till I hear from you" is the reality here..... give this a squiz nice n fresh...

By the way do a what if ....when truckloads of emergency U.S. dollars are pumped in post the Greek election.....on the basis of ..NO QE3.

..... we can't have QE3 , Count ......Chuckie ( Charles to the hoi polloi ) is next in line ......
Damn near 60 years he's waited to sit on the throne ..... no bloody wonder he always  looks so uncomfortable & constipated ......
.....C'mon QE2 , collect yer universal pension and get off ......mind yer don't get sh*t on the corgis ! 

I sheet you not GBH...says the Mexican yoda. I do hope you had a read of the link , because I'd like to put up a little piece from Bernake  Feb 2011....
I think the Market may hear in the not too distant ..."don't say you were not warned"
the utterances from the Fed are I believe more likely to be conditional easing...selective and criteria based...because it  (QE).......just....does ....not.....work....in ...the ....long...run.

My money's on Bernanke grabbing his dancing shoes , and doing the twist , a little more ....
...... like we did last summer , do you remember when , things were really humming , c'mon financial markets , twisting time is near ....

Yes GBH ...more twist...but with a twist...not a chubby one either.....

yes, I'd like to see some crystal ball gazing...
I can but assume the money will be used to prop up that banks as their shareholders and also EU govn bondholders exit stage right...the q is will the dumping be big enough to fill the void....I dont think so.....5 Trillion? 10?
If the Greek vote is deflaut and exit the only option at that point that has a hope in hell of working is the one I said before...Nationalise the G20 banks immediately....close all share and bond markets and sort it out, and that wont happen.

"ready to deal with it"
Doctors dealing with a terminally ill cancer patient are ready to deal with it.....doesnt mean they will succeed...

Good point. I should have said: "Ready to (try) to deal with it."

So its ok for Indonesia, Switzerland, Brazil, South Africa, Taiwan, Mexico, Peru, Russia, Poland, South Korea, Columbia and Iceland to have various forms of capital controls in response to 'print and make the USD cheap Bernanke' but New Zealand a major export orientated country like the others in the list is happy for our exporters to be reamed, our manufacturing to be hollowed out and the currency bounce like a yo-yo with hot speculative money. 

Goldenfox...Key and Co are well aware of hot money's appitite for basket pairings including the NZD not to mention protecting NZ. corporate hedge positions....MFG Exporters have given way to clicks n pips....as someone said yesterday wake up , your being had.  

The Bank of England announced it would provide cheap long term loans to encourage them to lend to businesses and consumers
Letmesee.... What was Bernakster saying circa 2008-2009. .... Something about providing cheap long term loans to the "too big to fail" banks to encourage them to lend to businesses and consumers

With no polls in Greece for two weeks there are no entrails to examine. If the post ww11 history of the Western world is anything to go by though, the Greeks will vote for poiliticians who promise an easy way out. They seem to have been told that having lenders forgive half the debts in exchange for them behaving better in future is too tough and it will be easy to get a better deal.
I bet they cant. They have the disadvantage of being fairly small. It has been an advantage so far as the cost of their bail out is relatively small. It will now work against them as the Europeans can let them go and take the losses. It will be worth it to them as an example to voters in other countries.
In the end it will work out better for the Greeks as a 90% devaluation of their currency will fix their problems. A cup of coffee will be 75  NZ cents instead of 7.50 and everyone will go there for a holiday. In the short term it will be terrible.

Alan Kohler , on ABC TV last night , put up an graph of German vs Italian manufacturing ..... and up until 1999 , the two lines happily moved in lockstep , squirming around each other alike snakes in love .....
.... after 1999 , immediately after , snakey divorce ! .... the German manufacturing line shot upwards , and the Italian manufacturing line slumped ......
Coincidence ? ..... I think not . The EURO & the Eurozone has been a brilliant mechanism for Germany to cannibalise its neighbour's industrial base , to strengthen themselves ..... and to weaken their former adversaries ........
...... with friends 'like Germany , who needs enemies ....

Beggar thy Neighbour ...el reverso presto.

Alright slow day...here's what Bernake had to say to congress Feb 2011.....worth the revisit for reasons of  consistency.....http://www.cnbc.com/id/41491193/

Other "GFC's"
"The depression, which was signaled by a financial panic in 1893"
Interestingbecaus ethe FED didnt exist then....
Funny thing is of course everything is blamed for the cause, like now really,
"has been blamed on the deflation dating back to the Civil War, the gold standard and monetary policy, underconsumption (the economy was producing goods and services at a higher rate than society was consuming and the resulting inventory accumulation led firms to reduce employment and cut back production), a general economic unsoundness (a reference less to tangible economic difficulties and more to a feeling that the economy was not running properly), and government extravagance ."
Of course govn size/spending pre-Great Depression was marginal, tiny compared to today amd we have clearly had good times and big welfare.....(NHS started in 1948?)
Also they were on a gold standard....
ho hum....
Comes back to demand.
Does this sound familiar?
"Farmers' terms of trade had worsened, and dollar debts willingly incurred in good times to permit agricultural expansion were becoming unbearable burdens. Debt payments and low prices restricted agrarian purchasing power and demand for goods and services"
"The business revival of 1891-92 only delayed an inevitable reckoning. While domestic factors led in precipitating a major downturn in the United States, the European contraction operated as a powerful depressant. Commercial stagnation in Europe decisively affected the flow of foreign investment funds to the United States."
Suggests debt and demand as the key....
Seems we keep repeating this once the last generation forgets......:this time we are brighter" doesnt seem to ring true.

In the interests of balance ...Bernard ,.....if you can..(sigh) spare the 60 seconds it took me to read it...worth the look, if only for some excellent observations.

So you and Steven not on the same page when it comes to the size of the public sector.
He firmly believes biggest is bestest.

Stop putting words that are un-true in my mouth ....Where do I say biggest is bestest? no way.....
Quote me....
Now in terms of value for money for some services yes when it comes to Health, education and welfare provision a govn provided service (at least clearly for the first 2) is the more efficient and the factor is 50% or more.....
Welfare is somewhat questionable....its interesting that the poor of NZ dont save and rely on the OAP yet the poor of china save up to 50% of thier income...of course then there is no consumerism in china as such so fewer useless jobs created, yet they do fine....
Just for the record, no I dont think big government is best carte blanche, and govn should stay out of ones life as much as possible.....but I dont think minimalisted govn like the desire of Libertarians to see are viable either.  So somewhere in the middle, somewhere close to where we are now is fine....

...... judging by his limp rebuttal , Mr Waripori ...... I think you hit a nerve with steven ....... he really does advocate for a bigger public sector ! .......  biggest is bestest , biggerest is besterest ...
Tsk tsk , some folk never learn .....

delusion as always GBH.....must be something in those bears.

the failed mantra continues count,
"In the end, if we want more growth, there is no substitute
for reducing government spending and excessive regulation.
And that’s just not the Fed’s job."
or the opposite course of action of course....either way its not the Fed's job.
I posed a piece on the 1890s depression and indeed the Great Depression is similar....its the lack of demand stupid....and if private business wont or cant invest/spend then the govn has to step in, or we will stay in the doldrums for a long time....or more likely get way worse.
I mean in terms of excessive regulation, if its lack of demand then removing regulation wont make the slightest difference. In fact we have de-regulated for 30 years, we should be or at least the USA booming.....its been lackluster for 10 years...at the least...jsut does not add up.
Its voodoo mantra IMHO....and its dominant, so as long as this stupidity rules we really risk going toes up.'
that piece, it isnt a long read,

Yo Stevo..!......when it comes to concise, I like this one,..it's one of yours.!
.either way its not the Fed's job.

yep, its the Govn's job....they lead....they Govern.....the Fed is a side event but nice to blame them for some. the Fed didnt exist in the 1890s and we had the gold std....so they cant be those as obvious and easy factors  ppls suggest.

I think I the Govt has a role to play Steven outside serving the Public interest ( in the most genuine sense both morally and fiscally) it should be in facillitating the fertility of  ground from which enterprise can flourish.....that is not to say I do not believe in state owned assets, I think you know that already.
 One of the main problems you have here and there with Govt.Administrations is the fact they have become involved with major Corporations in a partnership sense to the detriment of any true competition arising from fertile grounds, ....untill it's a hotbed of corrupt practices to curry the favour of Officials who should behave in the interests of the Public who installed them in good faith.
Absurd isn't it....it should be absolutley true.....but we meekly accept .....it is not.

"it should be in facillitating the fertility of  ground from which enterprise can flourish" yes tempered with considerations of the overall well being and wishes of its citizens.  I suppose the term is work for the long term best outcome for NZ. 
However just about any Nation you look today at seems to be only looking at the short term to the detriment of the long....I dont think anyone will counter argue that?  The arguable part is whats "best"....Ppls definations are the same though, they want the best for some group(s) v other group(s) just the groups differ........
Corruption in NZ? now I think the USA is a total banana republic and I wonder at times how far the UK is behind them.....clearly there are corrupt practices flourishing, not NZ much.
My worry is if you look at the last set of revolutions such as the French one the result was a lot of spilt blood....I dont want to see that repeated....so Im hoping democracy can be recovered.

".... and officials are ready to deal with it...." bahahaahah

This was interesting:
Tim Geithner BS his way through concerning the bailout of AIG . Asking him the questions is Elizabeth Warren (one clued up lady)
Love this also:
Alan Grayson questioning the US FED inspector general on 9 Trillion missing dollars