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Links 4/9/09
naked capitalism —
... Why did the Fed, the Bank of England, the ECB, the Bank of Japan and the Swiss National Bank announce a dubbel openslaande porte-brisée deur? Willem Buiter. Anyone who has the answer goes to the head of the class. ...
What is Wrong--among other Things!
Lawrance G. Lux —
... One might ask what is the Content behind this article. It is an obvious failure to understand Fed worries that their Stimulus packages were going to destabilize the U.S. Dollar, and they wanted a rapid means to insert Cash flow into foreign markets. Fast advances in Dollar prices for American Products would leave foreign markets short for American purchases in Dollars. This is a quick way for the Fed to buy foreign Currency to splash Dollars across foreign markets; foreign buyers would not have to sell in American markets to raise Dollar Cash. I find it disheartening that the ...
Foreign Currency Liquidity Swap Lines, Redux
Alea —
My first post was a bit short, and some commenters have mentionned a post by a certain Willem Buiter who wrote:
On April 6, 2009, the Fed, the ECB, the Bank of England, the Bank of Japan and the Swiss National Bank simultaneously made announcements about currency swap arrangements. I consider these statements to be misleading and quite possibly redundant.
They are neither, the four foreign central banks already have unlimited dollar swap lines facilities:
Authorized Swap Line
European ...
