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European Tribune - The Crash is past. Comes now Inflation.
Remember that the week before Christmas a number of central banks - the Fed, the Bank of England, the National Bank of Switzerland, the Central Bank of Europe, the Bank of Canada and a few others, had a coordinated effort to prop up the financial markets. In three days they poured nearly $1 trillion of liquidity into the system. Let me repeat that, folks: $1 trillion in three days. Since then, the U.S. Federal Reserve alone has been pouring in an estimated $15 billion each week, largely through the Fed's emergency Term Auction Facility launched December 17.
If I remember correctly, the ECB loaned two-week money. That trillion of liquidity is now gone. In fact, through the interest paid on the loans by the banks which needed liquidity, some additional money has been taken out of circulation.

We have met the enemy, and he is us — Pogo
by Carrie (migeru at eurotrib dot com) on Wed Mar 5th, 2008 at 06:11:10 AM EST

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