Central Banks Finally Acting Like It's A Liquidity Crisis?

[Schneibster]

The banksters may finally have "gotten it." The US Federal Reserve, European Central Bank, Bank of Japan, Swiss National Bank, Bank of Canada, and Bank of England have made an agreement that should help the liquidity crunch, if they can get anybody to actually start acting like it anytime soon. I'm still waiting for analysis from economists on this, but it's at least an indication that the banksters are starting to notice that there's a liquidity crisis. Little baby steps.

I'll update as the analyses come on-line; for now, here's an article with the bare facts and links to the banks' web sites with individual announcements per-country.

[klr]

The markets certainly seem to like it, but I suspect mostly for what it promises in the future in terms of serious coordinated action.

[Schneibster]

I agree. Part of it is that they're finally admitting that it's a liquidity problem. They're halfway. There is another big step to take. Luckily this step didn't require the approval of the US Congress, which is full of obstreperous obstructionist Republican Teagagger Party assholes, so there's nothing in the way. Part of the analysis will be whether they can get their hands onto levers to fuck future action using this up in order to stop Obama from getting re-elected. I predict they'll be out shortly with a statement condemning this, since it's going to help the economy.

[Svartalf]

Liquidity crunch? Isn't part of your problem cause by the fact that Bernanke had the Fed print tons of dollar without backing value and played the devaluation game?

[Warren Dew]

The markets certainly seem to like it, but I suspect mostly for what it promises in the future in terms of serious coordinated action.

Inflation expectations affect stock prices just like they affect other prices. Stock prices merely reflect them much more rapidly.

Liquidity crunch? Isn't part of your problem cause by the fact that Bernanke had the Fed print tons of dollar without backing value and played the devaluation game?

Yes, though that was partly a "beggar thy neighbor" approach to benefit the U.S. at the cost of Europe and Asia.

[Schneibster]

Errrrmmm, the Fed doesn't print money.

Just sayin'.

[Svartalf]

Well, Bernanke HAS advocated printing money as a solution to the current crisis.
I do think I heard that whoever doess it also did inject large amounts of currency into the circuit.

[Schneibster]

The Treasury is not the Fed.

Printing money is one way out of it, but not the most desirable. The most desirable is to unclog the jets by taxing the rich and using the money to buy infrastructure and put money in the pockets of the poor and middle classes. It won't cramp the rich's style (except the sociopathic greedy ones) and it will fix the problem the quickest way possible.

The Republicans are against it because it will let that scary Kenyan Muslim black man stay in the White House.