The Federal Reserve just made it easier for the world banks to swap U.S. dollars. Inflation and a deflated dollar might be side effects if this becomes an ongoing approach. Paul Gigot of the WSJ said in the short term, the Feds action is fine and won’t cause inflation. The money went into the markets and amounts to another bailout if I am reading this correctly.
This might help the markets temporarily (when the markets go up, the dollar goes down), but I sure hope they have a plan in the works to make substantive changes because this is a very temporary fix.
Are we in our currency death throes? I guess Obama wants us to go down with Europe.
We should be drilling and reducing regulations on businesses so they can open up the job market.
Instead we are doing this –
All the world’s central banks have just announced a big coordinated intervention to lower swap rates. In other words, it’s been made easier for banks all around the world to borrow dollars.
Markets are surging.
Dow futures are up 184.
The DAX is up over 4%.
Here’s the full announcement from the ECB. Read more: Business Insider