European Tribune - Comments - Not liquidity. Solvency.

Not liquidity. Solvency. | 83 comments (83 topical, 0 editorial, 0 hidden)

Re: Not liquidity. Solvency. (none / 1)

Can someone please explain to me why the ECB has injected $500B whereas the Fed has only injected $20B over the past two weeks? It would have made more sense the other way around, unless it's a European bail-out of the US financial system (through European banks with heavy exposure to US)...

by vladimir on Wed Dec 19th, 2007 at 02:02:34 AM EST

Re: Not liquidity. Solvency. (none / 0)

Not sure, but I think the Federal Homes Loan Board - a sort of Coop of banks - has been busily pumping in the dollars.....

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky

by ChrisCook (cojockathotmaildotcom) on Wed Dec 19th, 2007 at 03:02:27 AM EST
[ Parent ]

Re: Not liquidity. Solvency. (4.00 / 3)

Maybe the Euro has already replaced the dollar as the world's reserve currency.

We have met the enemy, and he is us — Pogo

by Migeru (migeru at eurotrib dot com) on Wed Dec 19th, 2007 at 03:20:49 AM EST
[ Parent ]

Re: Not liquidity. Solvency. (none / 1)

Exactly what I was thinking....

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky

by ChrisCook (cojockathotmaildotcom) on Wed Dec 19th, 2007 at 04:47:15 AM EST
[ Parent ]

Because the ECB (none / 0)

made its intervention immediately public, whereas the Fed will announce what happened on Londay in the course of today.

Plus, the Fed provides normal liquidity as well, there were headlines just because of the unusual procedure this time - and, as it happened in the European timezone, US banks took advantage of the available offer right away too.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Wed Dec 19th, 2007 at 05:41:02 AM EST
[ Parent ]

Not liquidity. Solvency. | 83 comments (83 topical, 0 editorial, 0 hidden)

. Home
. About
. Contact
. New User Guide
. FAQ
. ET Editorial Guidelines
. Search
. Search (Google)

Username:
Password:

. Make a new account
. Reset password

Recommended Diaries

Recent Diaries

Socratic Economics XII: Utopian Government Finance
by Zwackus - May 25
127 comments

A Star is Born
by ChrisCook - May 23
23 comments

$1,000,000,000,00
0 or what we must remember
by Metatone - May 19
69 comments

The balance of anger and fear
by Frank Schnittger - May 17
44 comments

Stable pricing is to metaphysics as variable pricing is to...
by Upstate NY - May 16
8 comments

A little American intercine battling
by rootless2 - May 14
27 comments

Another NRW election
by DoDo - May 13
118 comments

Bundesrat saves PV (and loses Röttgen)
by DoDo - May 12
18 comments

The mainstream German Magazine Spiegel asks, has the US mixed ...
by Democrats Ramshield - May 10
27 comments

Short Term Climate Forces: Black Carbon, Methane, and...
by gmoke - May 9

Twenty days of Crisis for Cameron
by ceebs - May 9
22 comments

SYRIZA and the Eurocrats: a letter of intent
by talos - May 9
363 comments

French Parliamentary Elections: a look under the hood
by Bernard - May 8
59 comments

Sunday Train: The Rock Island Line is a Mighty Fine Iowa...
by BruceMcF - May 6
18 comments

Greece election day II - Election diary and info
by talos - May 6
129 comments

Greece: Election day I - some background
by talos - May 6

Why haven't we had WWIII yet?
by Migeru - Apr 30
258 comments

More Diaries...

Occasional Series

Click for full list