The New York Times today has given us more of its great “wisdom” in the following story about how the central banks of the world are joining together to save us:
PARIS — The Federal Reserve, the European Central Bank and other central banks massively escalated the assistance offered to global money markets on Thursday, coordinating efforts to ease funding constraints stemming from the financial turmoil emanating from Wall Street.
The Fed said in a statement that it had authorized a $180 billion expansion of its temporary reciprocal currency arrangements, known as swap lines, to allow banks to borrow more dollars in markets at a lower rates.
“This is clearly a very significant help and central banks are showing decisive leadership here as risk aversion is hitting the private sector,” said Julian Callow, chief European economist at Barclays Capital in London.
Of course, they do not exactly tell us how this massive, world-wide attempt by central banks to manipulate the markets is going to work. We are supposed to believe that these “experts,” the same ones who gave us the crisis, now will solve it.7:01 am on September 18, 2008 Email Bill Anderson