This page has been archived and commenting is disabled.
Here Comes The Global, US-Funded Liquidity Bail Out
As expected, the Fed has just bailed out the world once again:
- FED, ECB, BOJ, BOE, SNB, BANK OF CANADA LOWER SWAP RATES - BBG
- ECB, FED other major central bank to lower the pricing of existing USD liquidity swaps by 50BPS
And as we have been writing every single day, the worldwide dollar crunch is now confirmed:
- At present, there is no need to offer liquidity in non-domestic currencies other than the U.S. dollar
And finally, a promise to bailout Bank of America when it hits $4.00 again:
- U.S. financial institutions currently do not face difficulty obtaining liquidity in short-term funding markets. However, were conditions to deteriorate, the Federal Reserve has a range of tools available to provide an effective liquidity backstop for such institutions and is prepared to use these tools as needed to support financial stability and to promote the extension of credit to U.S. households and businesses.
This means that the global situation is far, far more dire than the talking heads have said. Luckily, when this step fails, which it will, Mars can always come and bail us out.
For release at 8:00 a.m. EDT
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system. The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity.
These central banks have agreed to lower the pricing on the existing temporary U.S. dollar liquidity swap arrangements by 50 basis points so that the new rate will be the U.S. dollar overnight index swap (OIS) rate plus 50 basis points. This pricing will be applied to all operations conducted from December 5, 2011. The authorization of these swap arrangements has been extended to February 1, 2013. In addition, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank will continue to offer three-month tenders until further notice.
As a contingency measure, these central banks have also agreed to establish temporary bilateral liquidity swap arrangements so that liquidity can be provided in each jurisdiction in any of their currencies should market conditions so warrant. At present, there is no need to offer liquidity in non-domestic currencies other than the U.S. dollar, but the central banks judge it prudent to make the necessary arrangements so that liquidity support operations could be put into place quickly should the need arise. These swap lines are authorized through February 1, 2013.
Federal Reserve Actions
The Federal Open Market Committee has authorized an extension of the existing temporary U.S. dollar liquidity swap arrangements with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank through February 1, 2013. The rate on these swap arrangements has been reduced from the U.S. dollar OIS rate plus 100 basis points to the OIS rate plus 50 basis points. In addition, as a contingency measure, the Federal Open Market Committee has agreed to establish similar temporary swap arrangements with these five central banks to provide liquidity in any of their currencies if necessary. Further details on the revised arrangements will be available shortly.
U.S. financial institutions currently do not face difficulty obtaining liquidity in short-term funding markets. However, were conditions to deteriorate, the Federal Reserve has a range of tools available to provide an effective liquidity backstop for such institutions and is prepared to use these tools as needed to support financial stability and to promote the extension of credit to U.S. households and businesses.
Information on Related Actions Being Taken by Other Central Banks
Information on the actions to be taken by other central banks is available on the following websites:
Frequently Asked Questions: Foreign Currency Liquidity Swaps
»
- 45469 reads
- Printer-friendly version
- Send to friend
- advertisements -
Robo Trader ? Got Trolls ? CALL: "T.R.O.L.L B.U.S.T.E.R.S" 1 (999) MON - EDAS (Special offer code: 2011) Comedy Jihad Spike My Fuck ! The path through a Fiat Maze is never a straight line ! Grow some skin !
Buy FAZ in a few days. THis market is going down.
libertarian86.blogspot.com
all this by the bankers on behalf of the bankers...the rest of us they r sayin can get fucked...
as long as we allow these mother fuckers to walk the face of the earth without the real threat of receiving a bullet to the cranium this will continue...
fuck all bankers and their bitch owned politicians....
Global Central Banks Go to Defcon 4 - "Fire up the printing presses, gang!" Or at Least Swaps
http://confoundedinterest.wordpress.com/
Look at Euro bond yields versus US yields. US yields actually ROSE.
You folks just never get it....CBs got root rights in this game and you are just lowly low users.
how so, they are arogant as hell. HEadshot only solution.
Fuck Ben! I'm sure he already got the Christmas gold necklace for his wife. It's not yet late to go long gold, but you'd have to pay a premium.
The power of the printing presses combined that Krugman asked for is finally here. Go Planet!
There once was a time when stocks traded on price to earnings ratios and foward looking growth. That has since ended and they are now traded on the news of the day and rather than price to earnings, it has been replaced by how much printed money will be thrown into a market. Growth is not the by product of printed money, it is opening new markets, building a better mouse trap and creative ventures. This has all been replced by what side of the bed Bernanke wakes up on and what is the next lie he will tell the people while planning to print more money out of thin air.
This too will be a short lived rally and it is to piggyback the LIE that black friday sales were just wonderful, ingnoring of course that margins were dropped to nothing and it was an inventory dump to turn money and prepare for another disaster.
The US is a deep trouble and not only needs leaerdership, it needs to get rid of this courrpt banking game and out of the war business. We are capable of making products, in fact we developed most all the products the world consumes but we have lost direction and this game of weekly bandaids by a totaly courrpt banking cartel and a sick goverment must end.
does any of you guys / girls trades or you simply follow this idiot on ZH which makes money off you!
Good luck to you all.Trade well , make money, convert them into real assets and live your life while you are alive.The world eventually will blow out...it may not happen during this lifetime and your money are probably too limited to faigth the market
you can trade or you can complain, but you cannot do both
"you can trade or you can complain, but you cannot do both"
Hhmm, I'll take the contrarian viewpoint and simply say that if you can't complain while making money trading ranges ahead of the manipulation (a relatively easy multitasking assignment) then your probably aren't very good at either.
My wife complains all fucking day while getting all kinds of stuff done, multitasking 101.
What is required is to suspend all logic. BTFD and STFR. Rinse repeat and be nimble.
Doesn't matter. Still short banks long gold. It's a wash for me. It's when I get out of those positions that matters. I'm long on economic collapse.
Risk on, Bitchez! Dow 1000+ today.
Nice catch. Thank you.
Obambi to the Bernank:
Damn Germany. Well they're not going to tank my reelection. If they won't print, I will. Go and be independent now Ben. Print Europe a new asshole.
Hey, British cheapskate Socialists ! Free healthcare ? I go ya one better ! Public sector pay and retirement benefits for all UK subjects ! All welfare recipients receive equal pay as public sector workers ! Free everything for everybody ! Even illegals from Ivory Coast who rape and murder white bitches ! Prison inmates too ! Let's go all the way with the Social Fuck ! I dare ya ! Bums on the Thames....full pay and early retirement ! Where's your compassion ! Nation wide strike ! All Muslim bitches in Birkas.....full pay and early retirement ! There is no better time for Social Justice and equality than during our retirement years ! Divide Public Sector retirement funds amongst all the elderly ! Stop selective Socialism ! Unfair ! Universal Socialism now ! Bamkrupt the fucks in the name of compassion ! I want every Brit to join the strike and overwhelm it ! Fight fire with fire ! Monedas 2011 Comedy Jihad Overload The Safety Net And Bring It Crashing Down !
ESo, the USA central bank is saying they will provide lots of loans to European central bank at low interest rates. How does this fix anything, unless ECB starts to print money? Label me confused.
the country that holds the single largest amount of debt on the planet is bailing out the rest of the world?
the US is running up massive public deficits, the "good faith and credit of the United States inc. (TM)" is really junk if looked at from any commonsense measure. sure the fed can create monopoly money, but it's only backed by the debt it creates. so the only value it has is in paper form and that only so far as how much heat it will give off when you burn it trying to stay warm this winter.
this is neither a fix nor a temporary patch, it is surreal, high fiat stupidity, it is an abomination to economic nature.
I tend to agree with those on ZH who believe we are witnessing the birth of, the first concrete steps towards a one world bank and eternal debt serfdom, a mix of brave new world and 1984 made reality. the PTB's are so very, very close now to achieving that goal, what is left for them to do now but announce it publicly and implement it openly?
the NDAA bill is supposed to be voted on today, if it passes in it's current form, if the PTB's are allowed to turn America into a battlefield thereby giving the militarized police state unlimited power and the ability to circumvent the entire constitution and bill of rights at will and by law...well, if that's not the New World Order than I don't know what is.
We are witnessing a one Euro currency going up in smoke. What makes you think that a one world currency will work or even be a plausible solution to what ailes every western nation?
Rising oil prices and resulting inflation will ruin the party.
3 years after the financial collapse and trillions of borrowed dollars later and we are in worse shape then ever before.
WTF?
We have always had a World Currency....it´s called Gold ! It's ready whenever we need it ! Works well with Capitalism to promote economic activity without bureaucratic expense ! Monedas 2011 Comedy Jihad Until Everyone Discovers The Infinite Wisdom Of Capitalism In All It's Raging Naked Glory !
iT'S ONES AND ZEROS ON A COMPUTER, NO INK INVOLVED. Yet. The only problem is I don't have 10 dollars cash for a litre of gasoline. Will they take my full faith and credit?
Bailing out the Euro now? How does this not end in a Civil War II? Essentially they are setting up our children for eternal debt bondage (i.e. slavery). The younger generation will be forced to repudiate this dept. Civil War, here we come. http://www.futurnamics.com/civilwar.php
I know basically nothing about Fed. Policy, but was just wondering...does the Fed. have to get these types of bailout policies/global currency injection practices "ok'd" by anyone in our Government? I realize that they are actually their own entity and not an official part of the US government, but they do use/print our legal currency which effects our Nation's economy directly.
So I was just curious if Bernanke can implement these types of decisions on his own with the CB's or is there any US oversight that it has to pass?
Hopefully this isn't bad question, I'm still in learning mode ;)
Regards2All
Stu
The aliens that will bail us out are not from Mars. They come from Rigel 2. Just a minor quibble to be sure.
Green Shoots!!!
oh ... sorry ... disregard