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There is a rumor circulating that the ECB is prepared to announce a €600 billion loan facility for European banks over the next few days. One key analyst has suggested that the FOMC might re-open the dollar swap lines for Europe. Update: I don't usually post rumors during the day, but this is being widely circulated as a possibility.
Note that the Bank of Japan moved last night, from the Financial Times: Bank of Japan pumps funds into market
The Bank of Japan offered Y2,000bn ($21.6bn) in overnight liquidity on Friday to “increase markets’ sense of security” because of turmoil resulting from the debt crisis in Greece. ... the bank’s action reflects global demand for dollar liquidity as investors move out of the euro.
excerpt with permission
And from the WSJ: European Banks Head Toward New Funding Crunch
Europe's sovereign debt crisis is making it harder for European banks to get their hands on dollars and may require their central banks to step in with short-term liquidity ...
The Libor rate has increased, but it is still at a very low level. This could be something to watch.
U.S. regulators plan to examine whether securities professionals triggered yesterday’s stock- market plunge or exploited the turmoil to profit illegally, two people with direct knowledge of the matter said.
The Securities and Exchange Commission aims to determine if market participants accidentally or maliciously entered orders that derailed normal trading, the people said, declining to be identified because the inquiry isn’t public. The agency will also examine if controls to prevent the rout from snowballing weren’t in place at exchanges and firms.
SEC officials, who haven’t drawn conclusions, began preparing for inquiries in the hours after a U.S. selloff triggered by Europe’s debt crisis briefly erased more than $1 trillion in market value, beginning around 2:40 p.m. in New York.
Originally posted by GreenBicMan
I think it's time to think about getting rid of bgz CV
I would unload at least half now
The 200 DAILY MA has pretty much been respected, wouldn't you agree?
Can the Federal Reserve provide a quick fix to tame Europe’s growing financial crisis? Probably not. But it might be able to help if conditions in Europe worsen.
The Fed is considering whether to reopen a lending program put in place during the financial crisis in which it shipped dollars overseas through foreign central banks like the European Central Bank, Swiss National Bank and Bank of England. The central banks, in turn, lent the dollars out to banks in their home countries in need of dollar funding.
The Fed has felt that it is premature to reopen this program — which was shut down in February as the financial crisis appeared to wane — because it wasn’t clear that foreign banks were in need of dollar funds. Still, trading floors on Wall Street are abuzz with anticipation today that the Fed might use the program again.
Reopening the program would come at a cost for the Fed. Critics in Congress could be against the program because of the perception that the U.S. would be coming to the rescue of Greece and other struggling European nations. The Fed is already being pushed on Capitol Hill to be open to more scrutiny than it wants on the details of its international transactions. The international lending lines are known among central bankers as swaps.
Europe’s banks on Friday made a desperate appeal for the European Central Bank to buy the bonds of crisis-hit eurozone members, as a second day of turmoil in markets battered share prices around the globe.
Fears that a debt default by Greece could paralyse the world’s financial system – just as the collapse of Lehman Brothers did two years ago – sparked another wave of heavy selling in Asian, European and US stock markets.
Bank shares were the hardest hit, with those in Europe seen as the most exposed if Greece failed repay its debt falling by up to 9 per cent.
The FTSE Eurofirst 300 Index ended down 3.9 per cent at a six-month low, the FTSE 100 in London finished the week at a three-month low, while the Nikkei 225 Average fell to a two-month low. Greek and Portuguese bonds also tumbled. In New York, US shares extended their losses in early trading, slipping 1 per cent.
Worried bankers from 47 European groups urged the ECB to become a “buyer of last resort” of eurozone government bonds to steady markets.
There was speculation that the central bank could be preparing a €600bn ($762bn) loan facility for one-year loans at 1 per cent to help more than 1,000 banks in their funding.
Originally posted by marg6043
reply to post by Rockpuck
Yes but you are forgetting that manufacturing could be anywhere as long as is an American company, the way that the government have it set up it allows companies oversea to post gainings even if the productivity is no from manufacturing in the US.
Deceiving . . .
If The SEC is anything other than a lying sack of squeeze, it must force all brokers to HONOR NBBO from yesterday's trades.
The definition of NBBO is:
A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
So during the collapse yesterday Accenture traded at 0.01, as the below shows:
Originally posted by andy1033
reply to post by Hx3_1963
What the fed needs to do is ship its printing press over to brussels, and let them use it, to bail out europe at the anglo american empire expense. The anglo american empire did all this mess, how about it contribute to the fix.
President Barack Obama has not ruled out sabotage in the near-panic on Wall Street Thursday afternoon.