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Yes, demand is weak over there but the last one, below, is of particular interest to me.

Seems the banks around the world need USD rather than their local currency.

Another failure of banking regulation that they probably still don’t understand and therefore won’t address going forward.

I’ve been watching external debt bring down governments (and their banks) for over 30 years and it still isn’t part of bank regulation.

Highlights

U.K. Manufacturing Shrinks the Most Since 1992
U.K. Services Industry Growth Stalls for First Time Since 2002
BOE Emergency Rate Meeting Is `Possible,’ Morgan Stanley Says
Financial crisis: Can the Bank of England’s Mervyn King survive?
Bank of England Offers $40 Billion in Dollar Auctions Today

Bank of England Offers $40 Billion in Dollar Auctions Today

Oct. 1 (Bloomberg) The Bank of England offered $30 billion of one-week funds and $10 billion overnight as part of a global coordinated emergency effort to stem the financial crisis.

The bank also will auction another $30 billion in one-week money on Oct. 3. At that sale and in subsequent dollar operations, the bank will accept the same extended collateral eligible for its three-month long-term sterling operations.


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