Why ECB offering USD loans is insanity?

maxima

Established member

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• Sep 15, 2011

• #1

I dont do FX. Was looking at news and found this on DailyFX:

ECB ANNOUNCES DOLLAR LIQUIDITY MEASURES IN COOPERATION WITH FED

and then next comment from the same poster

insanity

Could someone pls explain why is it insane thing to do? I dont get it.

 

scose-no-doubt

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• Sep 15, 2011

• #2

Macro Man: What Euro Dollar funding crisis?

 

Martinghoul

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• Sep 15, 2011

• #3

It's not insane, but it doesn't make a lot of sense either. It's rather complicated, but the main thing is that they don't have to do it. However, they probably felt that this is an easy one and doesn't really require a lot of extra effort.

 

maxima

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• Sep 15, 2011

• #4

thank you