A surprising (if you don't want to say secretive) meeting of the
world's most influential central bankers produced even more surprising
results.
The US Central bank – the Federal Reserve – promised the
cash-strained European Central bank a practically unlimited amount of
American taxpayer money for cheap, effectively bailing out the Euro.
Markets
are rallying, traders are full of optimism and the Euro is up. The only
loser is the dollar: the good old buck has weakened compared to other
currencies. The reason? An announcement from the Fed, the European
Central Bank, the Bank of Canada, the Bank of Japan, the Bank of England
and Swiss National Bank reveals that they are going to provide troubled
European banks with massive amounts of cash – cheaper and faster than
ever before. Obviously, the lion’s share of assets will be provided by
the US Federal Reserve.
No comments:
Post a Comment