Central Banks coordinating effort roars

By Patrick See • September 16, 2011

On Aug 17^th, 2011 a single European bank borrowed US 500 million from a swap deal with ECB and the Fed Reserve. On Sep 14^th, two banks tapped the ECB for US dollar funding.

The above facility had not been used since Feb 2011 and is probably the latest indication that the EZ banking system is experiencing funding problems.

5 Central banks join forces to lend USD to EZ banks last night. Coupled with news on Wednesday from Germany-France and Greece, stock markets and the Euro roared! This is NOT a schedule event.

Prior to the joint intervention, Europe’s money market were showing signs of freezing up as they are experiencing the worst debt crisis in history! The joint intervention is to offer 3 months USD loans in 3 fixed rate operations to EZ commercial banks from October till December.

As you probably know, the US ...

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