Europese Kerstmis In September

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Het regent Dollars, de markten zullen (tijdelijk) overspoeld worden met dit groene papier.

Dit alles werd beslist op de 3de verjaardag van het Lehman Brothers onheil.
De beurzen en de Euro reageerden er alvast positief op.

Is Europa (tijdelijk) gered ?
Hoe lang zal het effect van deze ludieke actie duren ?

Zal dit Europa de nodige tijd geven om orde op zaken te stellen ?

BERNANKE TO THE RESCUE IN EURO BAILOUT REDUX: European Christmas In September As World's Central Banks Announce Global Dollar Free For All




We've seen this before somewhere, ah yes, Grayson grilling Bernanke in 2009 about dollar loans to foreign banks.

Inspired by a liquidity crunch, a silent run on European banks, with no access to market capital and few dollars to spare, from the sidelines enters the Federal Reserve, with Bernanke as Peyton Manning (before the neck fusion), and The European Central Bank, the Bank of England, Bank of Japan, and the Swiss National Bank as wideouts. A trillion dollar Hail Mary that will postpone the inevitable for another 3 months.

One would think that 'the can' would be getting tired of being kicked so often, and so ineffectively down the debt highway.
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FRANKFURT (MarketWatch) — The world’s top central banks announced Thursday that they will provide additional dollar loans to commercial banks in a move seen as a response to growing fears of a European credit crunch triggered by the euro-zone’s sovereign debt crisis.

The announcement, coming on the third anniversary of the collapse of Lehman Brothers, lifted shares in Europe and the United States, while the euro extended a gain versus the dollar to trade at $1.3904, a rise of 1.1% on the day.

The European Central Bank, the Bank of England, Bank of Japan, and the Swiss National Bank announced they will each conduct additional dollar tenders in an effort to provide liquidity through the end of the year. The central banks said the auctions are coordinated with each other and the U.S. Federal Reserve.

The move comes amid growing signs that European banks, particularly in France, are struggling to secure dollar funding in the interbank market due to worries about their exposure to Greek debt.

It shows central bankers are willing to take aim at a key concern in the markets, providing at least a short-term boost to risk appetite, said David Schnautz, interest-rate strategist at Commerzbank in London.

But the maneuver also serves to underscore nervousness over the banking system, he said.

“Obviously, the pure fact we are in a situation where central banks deem it necessary to conduct such an operation should ring alarm bells in itself,” he said.

The Euribor-OIS spread, which measures the difference between the three-month euro interbank offered rate and overnight index swaps, rose to 84.6 points on Sept. 12, its highest level since March 2009, according to Bloomberg. The index was seen at 78.1 basis points on Thursday, according to Dow Jones Newswires.

Tensions were seen mounting in funding markets in recent weeks. Moody’s Investors Service on Wednesday said it was growing increasingly worried about liquidity when it downgraded credit ratings on Societe Generale and Credit Agricole.

Shares of both banks jumped in the wake of the liqudity announcement.

The ECB will conduct three additional dollar tenders with a maturity of approximately three months in an effort to provide adequate dollar funding through the end of the year.

The Bank of England, Bank of Japan, and Swiss National Bank will also conduct additional dollar-liquidity operations.

“This provision of U.S. dollar liquidity to European banks — channeled from the Fed via ECB, BoE, and SNB — confirms our view that policy makers are not asleep and have learned lessons from the post-Lehman credit tightening that caused unwanted bank de-leveraging,” said Dan Dorrow, strategist at Faros Trading in Stamford, Conn.

“Central banks are proactively coordinating to limit real economy effects of the incipient European credit crunch,” he said, in emailed comments.

Nick Stamenkovic, fixed-income economist at RIA Capital in Edinburgh, said the move shows the ECB is clearly growing worried about funding conditions in Europe.

Ultimately, the situation still comes down to how policy makers handle Greece, but the move is “certainly a step in the right direction,” he said. “The ECB is doing its job.



Meer: The Daily Bail

Market Response: The Euro Is Saved (If Only For A Few Hours)
Submitted by Tyler Durden on 09/15/2011 09:22 -0400


By now, we know that isolated central bank intervention has a half life of about 24-48 hours. Next, we will find out what the duration of a concerted global central bank intervention will be. The kneejerk reaction so far, at least in the EURUSD is good to quite good. And when the impact of this latest bailout is phased out, as it eventually will, who will step in for the next much needed heroin shot of unlimited liquidity? Mars? Or, more likely, Uranus.

zerohedge

Europe's debt crisis prompts central banks to provide dollar liquidity
European and US stocks surge on news that world banks will flood markets – but Lagarde warns of 'dangerous' new phase
Guardian

Rest nog een klein detail. Wie zal dit alles betalen en waar zullen deze 'greenbacks' uiteindelijk naar toe gaan ?

[D'ARTOIS]

Het is een slimme manier om de virtuele waarde van de dollar te handhaven. EN om een vinger in de Europese politieke pap te houden.

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Unelected, Unaccountable, Unrepentant: The Federal Reserve Is Using Your Money To Bail Out European Commercial Banks Once Again

For a moment, imagine that there is a privately-owned organization in the United States that can create U.S. dollars out of thin air whenever it wants and can loan that money to whoever it wants to. Imagine that this organization is able to act with the full power of the U.S. government behind it, but that nobody in the organization is ever elected by the American people, and that for all practical purposes the organization is not accountable to the president or to Congress. Imagine that the organization is able to make trillions of dollars of secret loans to banks, to foreign governments and even to their close friends without ever having to face a comprehensive audit. Does that sound preposterous? Well, such an organization actually exists. It is called the Federal Reserve, and today we found out that once again the Fed is going to be taking huge piles of your money and loaning it to commercial banks in Europe. The Congress cannot overrule this decision. Neither can Barack Obama. Because it has so much power, many refer to the Federal Reserve as "the fourth branch of government", but unlike the other three branches of government, there are basically no significant "checks and balances" on the Federal Reserve. If you don't like the fact that the Federal Reserve is racing in to help big foreign banks survive the European debt crisis that is just too bad. The Federal Reserve pretty much gets to do whatever it wants to do, and the folks over at the Fed simply do not care whether you like that or not.

So what in the world just happened today? The following is how an article on CNBC explained it....

Just ahead of the Wall Street open Thursday, the European Central Bank, along with the U.S. Federal Reserve, Bank of England, Bank of Japan and Swiss National Bank announced they would offer three-month dollar loans to Europe's commercial banks, easing dollar funding constraints.

It must be nice to do whatever you want without having to get the approval of anyone else.

What do you think Barack Obama would give for such power right about now?

The Federal Reserve and other major central banks around the world decided that lending big European banks gigantic piles of dollars would be a good idea, so they are just doing it.

No debate, no votes and no democracy - they just tell us how things are going to be and that is that.

It is a bit ironic that all of this happened on the third anniversary of the collapse of Lehman Brothers. It is almost as if the central bankers of the world are trying to send some sort of a message.

So how much money is going to be loaned out?

Well, according to an article in The Daily Mail, big European banks are going to be able to borrow an "unlimited" amount of money....

The deal announced yesterday means banks will be able to borrow ‘any amount’ of money in three separate auctions in October, November and December. Banks will have to put up collateral, or security, to tap the emergency funds.

Wow - I wish someone would offer to lend me an "unlimited" amount of money.

But of course this really is not going to solve anything in the long run. You can't solve a raging debt problem with more debt.

Yes, it will help the big European banks with their short-term liquidity problems, but it will do nothing to fix the long-term structural problems that are tearing Europe to pieces.

Win Thin, a senior currency strategist at Brown Brothers Harriman, said essentially the same thing to CNBC today....

"They're taking care of the symptoms, but the underlying illness is still out there. On the margin, it's positive. Until Greece defaults and we clear this whole thing up, they're still treading water"

So, no, the financial problems of Europe have not been solved.

Just think of this latest move as a temporary band-aid.

So why get upset about it?

Well, what all of this shows is just how arrogant the Federal Reserve is.

The Federal Reserve gets to throw around trillions of dollars without any accountability to the American people.

As I have written about previously, the Federal Reserve made $16.1 trillion in secret loans to their friends during the last financial crisis.

This was revealed in a GAO report, and members of Congress such as Ron Paul and Bernie Sanders tried to get people to pay attention to this. The following is a statement about this report that was taken from the official website of Senator Sanders....

"As a result of this audit, we now know that the Federal Reserve provided more than $16 trillion in total financial assistance to some of the largest financial institutions and corporations in the United States and throughout the world"

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the economic collapse

Wat kan men gebruiken als 'collateral' om 'unlimited' te kunnen lenen ?