#swaplines — Public Fediverse posts
Live and recent posts from across the Fediverse tagged #swaplines, aggregated by home.social.
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"What saved capitalism (at least for a little while) after the Crash of 2008? Besides China (yes, China saved the capitalist world’s bacon by boosting magnificently its aggregate investment to take up the massive slack developing in the North Atlantic), the answer is: The Fed’s swap lines (i.e., the fact that, without second thought, the Fed lent the central banks of Europe and Japan something like $600 billion).
Something similar happened in 2020, as the pandemic spread panic and chaos through the West’s financial circuits (on that occasion, the Fed’s swap lines funnelled around $450 billion to a world dependent on the mighty dollar).
In this context, hotheads who think that Europe and Japan can afford to play tough with Washington seem unable to fathom the extent of their dependency. For the time being, Trump does not control the Fed. Or so it seems. But is it not possible that the Fed will not want to antagonise him? Is it, therefore, not possible that the Fed may not be as quick to ‘lubricate’ its swap lines at the drop of a hat (as it did in 2008 and 2020) when they are most needed?"
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Central Banks Reduce US Dollar Swap Lines to Weekly Auctions Amid Moody’s US Banking Sector Downgrade - After the tumultuous downfall of three major banks, namely Silvergate Bank, Silico... - https://news.bitcoin.com/central-banks-reduce-us-dollar-swap-lines-to-weekly-auctions-amid-moodys-us-banking-sector-downgrade/ #centralbankdigitalcurrencies #emergencyresponse #marketobservers #bankingcrisis #centralbanks #creditrating #economics #downgrade #liquidity #recession #swaplines #usdollar
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Fed, central banks enhance ‘swap lines’ to combat banking crisis - Currency swap lines have been used during times of crisis in the ... - https://cointelegraph.com/news/fed-central-banks-enhance-swap-lines-to-combat-banking-crisis #newyorkdistrictoffinancialservices #bankfundingprogram #siliconvalleybank #silvergatebank #signaturebank #creditsupply #households #businesses #insolvency #swaplines