I think we are in a new "liquidity" bubble

[goldfinger]

It's getting pumped up again. It's going to be sluggish at first I think, but it's going to shape out as a return to the environment before the bear sterns crisis hit. I think there is a lot of value in bank shares, as the "insolvency", turns to solvency, through inflation.

[Lysglimt]

Yes, that is the big question.
They will be able to save the banks, they have committed to that.
Will they be able to save some value for the shareholder as well? They might, just to keep the facade of capitalism alive.

[goldfinger]

Each move the fed does like this, with 1-1,5 trillion is like cutting the interest rate around 1 %, so now I assume we are at at around - 1 % however, that is in a rational market, who knows how it will feed on itself, because a lot of fear was priced into the dollar, this fear bubble could certainly get pricked with this move, causing the dollar to drop all the way down to 5-6 NOK in a self sustaining move. Goldman Sachs have said they need a - 6 % rate, that means they might go to around 6 trillion. I misjudged Bernanke. Someone must have pushed hard to get this through.

I think the next thing now, is the Bank of Japan, this thing seems to be turning into a round of competetive currency devaluations.