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Yep ... here we come to the rescue ... 
:
Geez we're suckers for it aren't we. We're only one of a few idiot countries to buy the whole Iraq war BS ... now Australian taxpayers get to swap quality Australian currency for cr*p US currency. Maybe we should put a 'kick me' sign on the harbour bridge with a US flag next to it.
(to be fair it sounds like most world central banks have stumped up for the task but its still aggravating).
http://money.cnn.com/2008/09/24/news/economy/Fed_global/index.htm?postversion=2008092407
WASHINGTON (CNN) -- The Federal Reserve Bank announced a deal with four nations Wednesday meant to help global financial markets.
The Fed said it has established reciprocal-currency arrangements with the central banks of Australia, Denmark, Norway and Sweden.
The agreement should make up to $30 billion available to the Fed so it can make loans to banks in the United States. The central banks of Australia and Sweden will provide $10 billion each while institutions in Denmark and Norway will supply $5 billion each.
The U.S. central bank's move to increase liquidity by reaching out to other countries is part of a larger effort to restore some level of confidence to Wall Street, said an economist.
It shows that "the [U.S.] central bank has some depth to it, some ability to respond," said John Silvia, chief economist at Wachovia, adding, "there is a backstop there - the [Fed] is not out there by itself."
The Fed's announcement, made at 1 a.m. ET Wednesday, follows a similar initiative it unveiled last Thursday -- ultimately a $247 billion reciprocal currency arrangement with the European Central Bank, Swiss National Bank, Bank of England, Bank of Canada and Bank of Japan.
The influx of money from the central banks represents an effort to put more money into financial markets and fuel economic activity.
Silvia said that the move does not necessarily mean that the Federal Reserve will use the line of credit immediately but rather that "they are getting ready for the future," said Silvia. "It is similar to what a business would do with a local bank," said Silvia. "[It] establishes that line of credit, which is absolutely essential."
In the current economic climate, with major financial and insurance institutions teetering, commercial banks have tightened their lending policies and increased interest rates, taking billions of dollars out of the economy.
"It is essential that the central banks do stand there and massage the trust back into action," David Buik of the BGC Partners brokerage firm in London said last week. "Without them, we would be in unbelievably uncontrollable turmoil."
Under the plan announced last Thursday, the European Central Bank will kick in up to $110 billion, the Swiss National Bank up to $27 billion, the Bank of Japan up to $60 billion, the Bank of England up to $40 billion and up to $10 billion from the Bank of Canada.
:Geez we're suckers for it aren't we. We're only one of a few idiot countries to buy the whole Iraq war BS ... now Australian taxpayers get to swap quality Australian currency for cr*p US currency. Maybe we should put a 'kick me' sign on the harbour bridge with a US flag next to it.
(to be fair it sounds like most world central banks have stumped up for the task but its still aggravating).
http://money.cnn.com/2008/09/24/news/economy/Fed_global/index.htm?postversion=2008092407
WASHINGTON (CNN) -- The Federal Reserve Bank announced a deal with four nations Wednesday meant to help global financial markets.
The Fed said it has established reciprocal-currency arrangements with the central banks of Australia, Denmark, Norway and Sweden.
The agreement should make up to $30 billion available to the Fed so it can make loans to banks in the United States. The central banks of Australia and Sweden will provide $10 billion each while institutions in Denmark and Norway will supply $5 billion each.
The U.S. central bank's move to increase liquidity by reaching out to other countries is part of a larger effort to restore some level of confidence to Wall Street, said an economist.
It shows that "the [U.S.] central bank has some depth to it, some ability to respond," said John Silvia, chief economist at Wachovia, adding, "there is a backstop there - the [Fed] is not out there by itself."
The Fed's announcement, made at 1 a.m. ET Wednesday, follows a similar initiative it unveiled last Thursday -- ultimately a $247 billion reciprocal currency arrangement with the European Central Bank, Swiss National Bank, Bank of England, Bank of Canada and Bank of Japan.
The influx of money from the central banks represents an effort to put more money into financial markets and fuel economic activity.
Silvia said that the move does not necessarily mean that the Federal Reserve will use the line of credit immediately but rather that "they are getting ready for the future," said Silvia. "It is similar to what a business would do with a local bank," said Silvia. "[It] establishes that line of credit, which is absolutely essential."
In the current economic climate, with major financial and insurance institutions teetering, commercial banks have tightened their lending policies and increased interest rates, taking billions of dollars out of the economy.
"It is essential that the central banks do stand there and massage the trust back into action," David Buik of the BGC Partners brokerage firm in London said last week. "Without them, we would be in unbelievably uncontrollable turmoil."
Under the plan announced last Thursday, the European Central Bank will kick in up to $110 billion, the Swiss National Bank up to $27 billion, the Bank of Japan up to $60 billion, the Bank of England up to $40 billion and up to $10 billion from the Bank of Canada.
