Posts Tagged ‘Eurobor’

Notes From Underground: Fed Feeds Europe More Dollars; China Offers to Buy European Debt (Yet Again)

December 22, 2010

The FEDERAL RESERVE announced it was extending the DOLLAR SWAP loans it has in place with several central banks. Earlier in the week, the market reported a shortage of DOLLARS in Europe as people were exchanging EUROS for DOLLARS and the commercial banks were caught short sending EUROBOR rates higher. BEN BERNANKE is nervous that a debt crisis in EUROPEAN banks will cause U.S. banks with exposure to the PIIGS’ sovereign debt major problems in the overnight lending facilities.