A Worldwide Move to Help Europe

     It is symptomatic of today that in discussing the news of the day what you write will inevitably become not the news of the day but the news of yesterday before the ink is dry so to speak. So it is that my previous just posted piece The International Dimension of our Economic Crisis though based in the morning's headlines in the Wall Street Journal already need to be updated.

    In an unprecedented move of global cooperation, the world's central bankers have all gotten together to provide liquidity to Europe.

    http://www.cnbc.com/id/44533476

   

    Central bankers across the globe acted today to end a growing dollar liquidity crunch for European banks by offering three-month dollar loans.

The European Central Bank effort is being launched in coordination with the Federal Reserve, The Bank of England, The Bank of Japan and the Swiss National bank.

    This shows how deep the concerns which we had spoken about in the previous post are for policy makers the world over-yesterday in a true man bites dog move, the second world countries had even discussed possibly helping out first world Europe.

    “The Governing Council of the European Central Bank has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with a maturity of approximately three months covering the end of the year,” the European Central Bank said in a statement.

     Nevertheless

     "In all likelihood this might be a temporary fix and we need to address the problems at large in Europe,” said Zahid Siddique, portfolio manager of Gabelli Equity Trust. “So the volatility will continue in the markets in the near-term…The hope is that over time, the system will fix itself.”

      http://www.cnbc.com/id/44533123