The Fed Ensures a Piece of the Hot Eurozone Meltdown Action
A 9:15p on a Sunday night press release from the Federal Reserve Board of Governors? Oh that's rich.
In response to the re-emergence of strains in U.S. dollar short-term funding markets in Europe, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing the re-establishment of temporary U.S. dollar liquidity swap facilities. These facilities are designed to help improve liquidity conditions in U.S. dollar funding markets and to prevent the spread of strains to other markets and financial centers. The Bank of Japan will be considering similar measures soon. Central banks will continue to work together closely as needed to address pressures in funding markets.
Bend over, America, this is your bailout too. Quarantining the contagion with funny money worked so well as an excuse last time, they'll be trying that line again except by now we've run out of free money and the day of reckoning can no longer be postponed.