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Wed, 11/30/2011 - 09:30 | 1929790 Pladizow
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The Fed could'nt care less about Europe, this is being done to save US banks, particulary - Bank of America's ass.
No way would a $4 handle be allowed.
BOA goes down and all the CDS Merrill wrote goes with it.
Game over - bond market implodes.
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Wed, 11/30/2011 - 09:42 | 1929843 TruthInSunshine
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Unless I am very mistaken, this exact same arrangement (Fed open swap lines to EU banks/sovereign) was done back in 2008, and the reaction of equity markets (whether directly related or not) was to plunge a further 28% or even 35% (on top of the declines that had already taken place).
http://www.zerohedge.com/news/foreign-currency-liquidity-swaps-aka-global-bail-out-plan-b-faqs?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Geee I hope this works out for BAC LOL Was up 5% just a few minutes ago, and we have a red candle, on this stellar news/bailout..............
Well AMERICANS........How does it feel to bailout the world again..............We now own the world......
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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