"First it was Zero
Hedge. Then Ron
Paul joined in. Now it is the turn of a former Dallas Fed Vice President,
Gerald ODriscoll, to outright accuse the Fed of bailing out Europe courtesy of
"incomprehensible" currency swaps, and implicitly accusing Bernanke of lying
that he would not bail out Europe even as he has done precisely that. And not
only that: by cutting the USD swap spread from OIS+100 to OIS+50, the Fed has
made sure it gets paid less than ever for extended Europe the courtesy of
bailing it out all over again. Incidentally, O'Driscoll says, "America's
central bank, the Federal Reserve, is engaged in a bailout of
European banks. Surprisingly, its operation is largely unnoticed here." One thing we can say proudly - it has been noticed loud and clear here...
From the WSJ:
The Federal Reserve's Covert Bailout of Europe
When is a loan between central banks not a loan? When it is a dollars-for-euros currency swap.
America's central bank, the Federal Reserve, is engaged in a bailout of European banks. Surprisingly, its operation is largely unnoticed here..."
at http://www.zerohedge.com/news/former-fed-vp-accuses-bernanke-bailing-out-europe-currency-swaps
European banks. Surprisingly, its operation is largely unnoticed here." One thing we can say proudly - it has been noticed loud and clear here...
From the WSJ:
The Federal Reserve's Covert Bailout of Europe
When is a loan between central banks not a loan? When it is a dollars-for-euros currency swap.
America's central bank, the Federal Reserve, is engaged in a bailout of European banks. Surprisingly, its operation is largely unnoticed here..."
at http://www.zerohedge.com/news/former-fed-vp-accuses-bernanke-bailing-out-europe-currency-swaps
