Wednesday, December 07, 2011

"Liquidity"

I'm sure many of us could use some free "dollar liquidity."
The idea is to provide dollars to European banks, who have been struggling to get hold of them. The market has seized up given fears over European banks' future.

Anyway, banks asked for $50.7bn in three-month dollar funds. This was their first opportunity to use the facility.

To put the $50bn into some context, money market traders were expecting banks to take about $10bn, according to Reuters.