Truthmatters
Diamond Member
- May 10, 2007
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A good, concise article on the mechanics of todays move by the central banks:
The attempt by major central banks to ease strains on Europe's credit markets certainly cheered financial markets on Wednesday, but what does the coordinated action actually do?
In essence, the US central bank, or Federal Reserve, agreed to provide cheaper dollar funding to the European Central Bank-which can then provide cheaper dollar loans to cash-strapped European banks.
...........................................
The goal is to ease the credit crunch in Europe. Lots of European banks make dollar denominated loans, in part because US interest rates are so low. The banks do not usually finance these loans in the way you might think-by lending out the deposits of their retail customers. Instead, the loans are financed by short-term borrowings from other financial institutions.
Central Banks to the Rescue? What Today's Action Means - Yahoo! Finance
A good, concise article on the mechanics of todays move by the central banks:
The attempt by major central banks to ease strains on Europe's credit markets certainly cheered financial markets on Wednesday, but what does the coordinated action actually do?
In essence, the US central bank, or Federal Reserve, agreed to provide cheaper dollar funding to the European Central Bank-which can then provide cheaper dollar loans to cash-strapped European banks.
...........................................
The goal is to ease the credit crunch in Europe. Lots of European banks make dollar denominated loans, in part because US interest rates are so low. The banks do not usually finance these loans in the way you might think-by lending out the deposits of their retail customers. Instead, the loans are financed by short-term borrowings from other financial institutions.
Central Banks to the Rescue? What Today's Action Means - Yahoo! Finance
your right thanks
ADP jobs number was very good.
Chicago PMI was very good.
Global central banks cut interest rates on swap lines.
It is a good day for the markets.
ADP jobs number was very good.
Chicago PMI was very good.
Global central banks cut interest rates on swap lines.
It is a good day for the markets.
Yeah - great day for the markets.
Bad day to be an American taxpayer.
Congratulations on exploiting us again.
ADP jobs number was very good.
Chicago PMI was very good.
Global central banks cut interest rates on swap lines.
It is a good day for the markets.
Yeah - great day for the markets.
Bad day to be an American taxpayer.
Congratulations on exploiting us again.
You're welcome.
I was short stock this morning though.
BTW you know what the banks did, right? They cut the interest rate on dollar liquidity swaps from LIBOR+100 to LIBOR+50. That's what happened.
ADP jobs number was very good.
Chicago PMI was very good.
Global central banks cut interest rates on swap lines.
It is a good day for the markets.
Yeah - great day for the markets.
Bad day to be an American taxpayer.
Congratulations on exploiting us again.
You're welcome.
I was short stock this morning though.
BTW you know what the banks did, right? They cut the interest rate on dollar liquidity swaps from LIBOR+100 to LIBOR+50. That's what happened.