Monday, May 19, 2008

This is how you run an economy.

Talk about "unexpected" rate hike. Still believe 2.what % inflation?

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Vietnam Raises Its Benchmark Interest Rate to 12% (Update2)

May 17 (Bloomberg) -- Vietnam will raise its benchmark interest rate, lifting the maximum return that commercial banks can offer depositors to 18 percent a year, the Southeast Asian nation's central bank said.

The State Bank of Vietnam will increase the base rate to 12 percent from 8.75 percent on May 19, according to a statement released in Hanoi today. Under central bank regulations, banks cannot offer savers rates exceeding 150 percent of the base rate.

8 comments:

alcan said...

In trying to deduce your posts, it seems that you are suggesting imminent rate hikes by the Fed. Although your information sources are probably better than mine, I just can't see that with the current Gang of 3(B, Mish and K). I am sure you have read Ben's 2002 manifesto about why deflation can't and won't happen here. The arrogant tone and the absolute disregard for any blowback repercussions in that article simply amazed me. They don't give a rats ass about how destitute their actions and price inflation will be to some widowed elderly lady in Wisconsin or Idaho. Their primary concern is the welfare of the Primary Dealers. If you or Greenie or Charles or I can pick up some scraps on some good trades on the ups and downs, then so be it; most Americans (and Egyptians and Haitians and Mongolians and where ever else there have been food riots)can't. I think they had a window of opportunity to do the right thing last June-July-August but they have chosen the current path instead. Or maybe they had no choice but who knows.

MTGSPY said...

well, i thought you'd best know this is not unlike saying there are 2 Vietkong divisions cutting off our retreat. :D

This place is incrasingly becoming isolated and it's not normal to expect something good out of it.

alcan said...

I am afraid you are speaking in tongues again. At least Charles is straight to the point! ;>
It would be most favorable if you show one more of your cards regarding future interest directions.
Oh, and I hope you weren't out shopping for FNM today. I would at least wait to the S&P approaches its 20 day MA.

douche_bag said...

alcan...IMO these turds should raise interest rates...get this crap under control... not sure if it is gonna happen but perhaps volker etc will have bernanke's ear(he has been more vocal)...also perhaps asian buyers will give him a talking to in white man chinee interracial type way...

MTGSPY said...

I wont hang my hat on UNEXPECTED rate cut or unexpected ANYTHING.

Pricing is based on expectation. This is to alert you that USA is increasingly surrounded by facts produced by other nations that inflation is indeed double digit. And that the way to cure it is to pre-empt with unexpected rate hike.

To the extent we think that's a bad idea and continue to offer "moral" support to the equity bulls (Fed funds rate is "symbolic", remember?) then it's not ludicruous for me to say that something "bad" is going to happen to us. As in worse than what we've seen todate.

D said...

Again...

Academics and salesmen calling the shots. We would not have a credit crisis if it wasn't for them calling the shots. We be hosed!

gtt said...

Very well put spy, pun intended.

(Wondering if its a good idea to open a savings account in vietnam payin 15%?)

MTGSPY said...

Yes. You will get screwed less.