Archive for September, 2011

Feds and ECB — Taxpayers Pay Again

Sunday, September 18th, 2011

On Thursday, 15 September 2011, the Federal Reserve, European Central Bank, the Bank of Japan, the Bank of England and the Swiss National Bank announced that they had launched a coordinated global effort to boost dollar liquidity. What this meant was that the Fed came in and saved the day, providing liquidity to European banks who had claimed that they did not require additional liquidity. Upon delivering the news, several things occurred. First, the US Dollar Index tanked against the Euro. In less than 5 minutes, the Euro which had been trading at $1.37 against the dollar rallied to nearly $1.39. And the US Dollar, which had been rising steadily, dropped from $78.5 to nearly 76.5. And if that was not bad enough, crude oil which had been ranging in the low to mid $80’s per barrel roared to over $90. The stock market closed up 186 points. The question is, who does Bernanke work for? (more…)