MaggieMae
Reality bits
- Apr 3, 2009
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That does not include any loan, "bailout" that the EU will provide to Greece. An EU bailout, not to include the IMF, and our contribution to that will be debated in our country. Hopefully, our politicians will vote to NOT send more of our funds to assist in the bailout of a EU country that is only a victim of its own devices!
Sadly, Obama has asked Bernanke to step outside of the FED charter and assist Europe. Bernanke has done so and needs to undo his wrong which so far appears to only be promises to assist. We can not use the FED to assist the world, yet we have started to do so. Obama is the biggest shithead in the history of American politics.
That same "stepping out" was also done I believe in 2007, and the U.S. received not only its money back, but interest on it amounting to over $1 billion. (Don't have time to search for the history right now.) It's hardly a bad deal.
Fed Restarts Currency Swaps as EU Debt Crisis Flares (Update3) - BusinessWeek
Stress Sign
In a swap, central banks exchange foreign currency with an agreement to reverse the transaction at a later date. The central banks will then lend the dollars at fixed rates to firms in their countries. Dollar liquidity tightened in London last week amid concern financial institutions are holding too many assets of Europes most-indebted nations.
My concern was whether or not the financial concerns for financial institutions in Europe would spill over into the United States and affect our incipient recovery, Philadelphia Fed President Charles Plosser said today in an interview on CNBC. Hopefully the actions that have been taken will prevent that from happening, and the Feds role in this, in renewing the swap lines, was an effort to help ensure that that didnt happen.