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    ECB to provide banks with dollar loans

    FRANKFURT, Germany (AP) — The European Central Bank announced plans Thursday to provide banks with dollars in three medium-term loan operations through the end of this year.

    The ECB said it had decided to launch the three-month loans in coordination with the U.S. Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank.

    Banking stocks have been hurt recently on fears that they were having trouble getting short-term loans from each other. These central bank loans would relieve that pressure.

    Markets and the euro currency were already up before the announcement, but were further buoyed by the news.

    Coming on top of mounting hopes that Greece will not be defaulting on its debts anytime soon, the news has helped ease concerns over the impact of Europe's debt crisis on banking stocks.

    The 17-nation currency surged to a daily high of euro1.3934 before retreating slightly to euro1.3887.

    The ECB said in its statement that the tenders will be conducted in October, November and December.

    Central banks around the world have joined the coordinated effort to prevent Europe's debt crisis from derailing the global economy's rebound from recession. The U.S. Federal Reserve in 2010 reopened a program to ship billions of U.S. dollars overseas in a bid to pump more short-term cash into the financial system and make sure banks have the dollars they need.

     

    39 comments

    • Daniel  •  8 mths ago
      Do we really need banks?
      • Mathwizard 8 mths ago
        Yes.
      • health1_au 8 mths ago
        40% of Americans certainly don't need banks, except to rob once in a while.
    • reality  •  8 mths ago
      "mounting hopes that Greece won't be defaulting any time soon"

      But...they will eventually be defaulting. seems to be implied here.
    • ChuckT  •  8 mths ago
      This sounds like financial slight of hand to me . The shell game on steroids. lol I've become one hell of a cynic after watching our financial system in action.
    • Kurt R  •  8 mths ago
      I hope all of you Collectivists are happy. This is how the modern welfare state ends. Who is John Galt?
    • Cappypappy  •  8 mths ago
      These loans have to be paid back with compound interest and are, as such, anything but a "bailout." Banks from the U.S. and other industrialized nations have enriched themselves through these loans, leaving debtor nations chronically impoverished with zero chance of ever being able to pay down any of the principal. What Greece, Portugal, Spain and most of the third world countries have to do is stop payment - NOT ONE MORE DIME!!! (BTW, conservative economists usually respond to this by saying "Well hey...they signed!")
    • tedds  •  8 mths ago
      Primping the pump will not work because the Vandals took the handle.
    • Al V  •  8 mths ago
      The Banking Cartels are taking over. Watch how long it takes them to become your Government. That's their plan and you're letting them get away with it. Not to worry, though. The USA will be there with you in short order. We have our own Banking Cartel buying up our Government, crook by crook.
      • Gracedrs 8 mths ago
        They don't even have to buy it up, they fabricate the dollars and print them and then loan them to us with interest! Now that is the best joke of all!
        We would save around 6 trillion of our debt if we told the Fed thanks for the paper you printed, we have decided not to pay ourself back - well just save the money for more important things!
    • Mt Hikes  •  8 mths ago
      The whole point of creating the Euro was to have an alternate reserve currency to the Dollar. By issuing Dollar loans, an entity no less than the ECB is, basically, admitting, that this objective has now failed and the Dollar is still the only reserve currency in the world!
    • Chris  •  8 mths ago
      Shut down all banks and all financial insitutions ... "forever" and let Anarchy Rein...well not total anarchy but certainly be allot of Crooks from Miami to Vermont hauling A## to thier hide outs( POLICE, Politicians, BANKSTERS,CEOs, Movie Stars, Lawyers and Judges) you name it except the average JOE when it does ensue so---- stock up now!
    • AL  •  8 mths ago
      The only color the posters should be is not BLACK/WHITE but green. We are ALL getting hit in the butt with a planned failure of our deficit!
    • Stephen  •  8 mths ago
      Now they want to bailout the euro with worthless US FED reserve dollars? HAHA, things are really bad. Well, if we don't want more bailouts, I guess they might as well send them over their, after all, they are NOT an agency of the US gov, but a private cartel, and they have NO other function than to print fiat counterfeit currency.

      This will hopefully speed up the wait for TOTAL world financial collapse.
    • health1_au  •  8 mths ago
      "ECB to provide banks with dollar loans"

      My guess: Freshly printed dollar loans.

      A little more of Ben chipping away at the value of your hard-earned dollars while telling us all, lying that is, that inflation doesn't exist.

      Does he shop for groceries? Or, is that one benefit of working for the Fed: you have someone take care of all those pedestrian things...
    • Edmund  •  8 mths ago
      Do this free loans just go directly to paying the huge bonuses?
      • Cappypappy 8 mths ago
        "Free loan" is a contradiction in terms.
    • O.G. - Oscar the Grouch  •  8 mths ago
      time to start having your wives barter their bodies for goods.
    • Apocalypse  •  8 mths ago
      this is just a sign of the times and the end of things as we know them, a great change will happen and it will not be for the good
    • Johnny D.  •  8 mths ago
      Banking stocks have been hurt recently on fears that they were having trouble getting short-term loans from each other. These central bank loans would relieve that pressure........which its going to need especially now since a rogue trader has caused UBS Swiss banking giant an estimated loss of $2 billion, stunning a beleaguered banking industry
    • Robert  •  8 mths ago
      Every paper money based currency in history has eventually failed. Your homework question: What happened to all of the gold and silver in Fort Knox?
    • StopChukin'MyWood!  •  8 mths ago
      the lemmings in a row. the cliff inches away. just as obama and sorros planned it. fema will be calling the shots in america by new years. there will be troops on main st. usa.
      • Jon 8 mths ago
        the troops better disobey
      • Cappypappy 8 mths ago
        Don't count on it; half of those troops are NOT white.
    • Predictor  •  8 mths ago
      Federal Reserve is OUT OF CONTROL. Elect Ron Paul to fix this problem and reign in the rich from controling our lives.
      • ROBERTL 8 mths ago
        Sure, elect Ron Paul and wwwithin 6 months we'll all be in soup lines and living on the streets. He and his cronies are all for their rich buddies and the hell with everyone else.
    • James  •  8 mths ago
      "The U.S. Federal Reserve in 2010 reopened a program to ship billions of U.S. dollars overseas........"

      What's wrong with this picture? You want to buy Park Place?
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