11.30 Liquidity Swap Announcement: A Repeat of 2008

Shenandoah ^ | 11-30-11 | John Galt

[tcrlaf]

From the Federal Reserve website, Press Release on Monetary Policy release from September 18, 2008:

Press Release Release Date: September 18, 2008 For release at 3:00 a.m. EDT

Today, the Bank of Canada, the Bank of England, the European Central Bank (ECB), the Federal Reserve, the Bank of Japan, and the Swiss National Bank are announcing coordinated measures designed to address the continued elevated pressures in U.S. dollar short-term funding markets.

These measures, together with other actions taken in the last few days by individual central banks, are designed to improve the liquidity conditions in global financial markets. The central banks continue to work together closely and will take appropriate steps to address the ongoing pressures.

SNIP-------

Press Release Release Date: November 30, 2011 For release at 8:00 a.m. EST

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system. The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity.

These central banks have agreed to lower the pricing on the existing temporary U.S. dollar liquidity swap arrangements by 50 basis points so that the new rate will be the U.S. dollar overnight index swap (OIS) rate plus 50 basis points.

This pricing will be applied to all operations conducted from December 5, 2011. The authorization of these swap arrangements has been extended to February 1, 2013. In addition, the Bank of England, the Bank of Japan, the European Central Bank, and the Swiss National Bank will continue to offer three-month...

[tcrlaf]

The last time the world’s central banks agreed to this type of intervention, the S&P reacted positively, as expected on September 18th and 19th of 2008:

. Meanwhile, reality set in shortly thereafter: .

[bramps]

Conversations from world financial leaders:
It didn't work last time we tried this so let's give it another chance. We must of left out a piece of it.

This is generally referred to as insanity. Doing the same thing and expect different results!!!

If you can't pay your mortgage guess what happens!!!! And guess who will do it to you!!!! The same f’n banks that are lending countries that are bankrupt more of your money to piss down the black hole of Socialism/Communism.

Not only should those in this country that agreed to it be fired, defeated in elections, but should also be criminally tried as any investment fund manager would be for negligent investing!!! This is so ludicrous, it leaves me breathless.

Finally, the manner in which this administration ignores the laws, both legal and moral, ignores the best interest of the country, it leaves one with the only remedy remaining. If your not paying attention to laws applied in courts, it leaves no choice but to do what happened in the old west. Vigilantism will rise sooner or later. Not that I'm advocating it. It will just be the natural procession of events that will cause it.

[RobertClark]

This in turn opened a whole other can of worms: Todays $8b POMO has been cancelled:

So, they don't state technical difficulties - a POMO has NEVER been cancelled in history. System liquidity is gone - worldwide. The Fed can't sop it up any longer - there simply isn't enough cash in the system. We are screwed - we may not make it through Friday!

I am anticipating a run up in the markets led by commodities in the near short term (very short - next few days) - from there, poof - game over.

[PeterPrinciple]

Finally, the manner in which this administration ignores the laws, both legal and moral, ignores the best interest of the country, it leaves one with the only remedy remaining. If your not paying attention to laws applied in courts, it leaves no choice but to do what happened in the old west. Vigilantism will rise sooner or later. Not that I'm advocating it. It will just be the natural procession of events that will cause it.

---

Maybe, but the most likely model is Germany in the late 30’s. The standard Nuremberg defense was, “I only did what I was told.”

We had a pastor in our church who's idea of Sunday night worship was dressing up like Doris Day and singing songs, all in the name of fellowship. I could not get one man in church to stand with me and correct him.

How many stood up in Germany, and if they did, did it make a difference?

[vanilla swirl]

” we may not make it through Friday!”

Cool!

You do know we’ve heard that before right?

[moovova]

"Keep those presses rolling, boys..."

[Future Useless Eater]

>>The authorization of these swap arrangements has been extended to February 1, 2013.

No surprise there... kicking the can past the election.
The FED needs auditing and disbanding.

This wealth transfer from our children and grandchildren to the other irresponsible spenders in the world will greatly dwarf the 120 billion per year the Super Committee was trying to CUT

[Varsity Flight]

What a coincidence, Dow up 400, SP+39. NAS 80+, Gold +30, Oil over 100. Just can’t wait to see those gas/fuel prices and food prices for everybody (except govt.)