"Counterparties in these operations will be able to borrow any amount they wish against the appropriate collateral (my take: toxic waste) in each jurisdiction. Accordingly, sizes of the reciprocal currency arrangements (swap lines) between the Federal Reserve and the BoE, the ECB, and the SNB will be increased to accommodate whatever quantity of U.S. dollar funding is demanded."
"Central banks will continue to work together and are prepared to take whatever measures are necessary to provide sufficient liquidity in short-term funding markets."
HA! Keep pouring that money down the black hole - ain't going to work. Today we saw a nice dead cat bounce - picking up 936 points on the DOW, but 7,200 (over the longer term) won't be denied.
Did you see the report on Europe? They are putting $2.3 trillion on line for banks
European governments overcame their differences to put $2.3 trillion on the line Monday in guarantees and other emergency measures to save the banking system in their most unified response yet to the global financial crisis.
The pledges by six countries that use the euro and Britain helped soothe stock markets, along with a promise by top central banks to provide unlimited short term dollar credits.
Meanwhile Monday, the British government injected another $63 billion into some of the country’s leading banks Monday to avoid a full-scale collapse of the sector.
Can you imagine: Central bankers are now handing out unlimited free money to all the guilty bastards (big banks) who got us into this mess by creating, packaging and selling AAA rated dog-shit. Don't tell me they didn't know the longer term implications of their deceptive actions.
As an aside, what do you think the ramifications will be of all this new liquidity on G7 purchasing power?
Hyperinflationary depression here we come!