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  • Europe's Growing Crisis Puts Fed at Risk (Fed loaned $400 Bil to a Europe that can't pay)

    02/01/2009 5:52:44 PM PST · by Golddigger3 · 17 replies · 1,070+ views
    Barron's ^ | 2/2/08 | JACK WILLOUGHBY
    SNIP RECENTLY LATVIA, WHOSE central bank has bailed out the country's banking system, was the scene of demonstrations and populist rhetoric aimed at granting borrowers relief on loans from Swedish banks -- which have a big presence in the Baltic nation. If the Latvian government grants this relief, it would seriously hurt Swedish lenders, whose central bank has borrowed $25 billion from the Fed in these currency-swap lines. "This is the kind of fiscal pressure that can easily rip the European Union apart, and cause the kind of civic upset that leads to revolution," says Sean Egan, co-founder of Egan-Jones,...