Federal Reserve opens credit line to Europe

The Tampa Tribune ^ | May 9, 2010 | AP

[CodeToad]

You’re known as the guy whose like the little mutt that always wants to hump a leg. You’ve been wrong about so many things I lost track and lost interest in you. Your knowledge of economics is about that of any liberal taken at random. You’re one of those computer nerds types that always has to say something about anything no matter how little you know of the subject. You just want to be right and get attention for it. So, no, you don’t have facts to back up your assertions and I’m not interested in wasting my time with you.

[Toddsterpatriot]

1.30 Euro is the problem. What will the euro be when they pay it back.

Since they're borrowing dollars and paying us back dollars, I'm sure it doesn't matter.

[Toddsterpatriot]

So, no, you don’t have facts to back up your assertions

I don't have the facts to back up my assertion that a swap isn't a gift? LOL!

[driftdiver]

“Since they’re borrowing dollars and paying us back dollars, I’m sure it doesn’t matter. “

Uh yeah it does, assuming the exchange rate is different.

[Toddsterpatriot]

“Since they’re borrowing dollars and paying us back dollars, I’m sure it doesn’t matter. “

Uh yeah it does, assuming the exchange rate is different.

Uh, no it doesn't.

Say the ECB swaps 100 billion Euros for $130 billion.

Now the Euro drops to 1:1 with the dollar.

The ECB pays back the Fed the $130 billion they borrowed, the Fed gives them the 100 billion Euros.

How does it matter again?

[driftdiver]

1 dollar for 1.3 euros

if the rate is 1.0 then it takes 1 dollar for 1 euro.

Otherwise the currency markets have been buying and trading for no gain for decades.

[Toddsterpatriot]

if the rate is 1.0 then it takes 1 dollar for 1 euro.

So what?

Otherwise the currency markets have been buying and trading for no gain for decades.

I guess that's the difference between trading and swapping.

[driftdiver]

You’re right, this is a great deal for the US. We’re gonna get rich doing swaps. Soon we’ll pay off the deficit.

[Toddsterpatriot]

You’re right, this is a great deal for the US.

I don't remember saying that. Perhaps you can show how it's a bad deal for the US?

We’re gonna get rich doing swaps. Soon we’ll pay off the deficit.

It will be profitable, but not nearly enough to pay off the deficit.

[driftdiver]

Wanna buy a bridge?

[Toddsterpatriot]

Is that the same thing as pointing out your misunderstandings?

[driftdiver]

No thats saying you will believe anything, so I have a bridge in New York City I’ll sell you.

[Toddsterpatriot]

What do you feel I am wrong about? Be specific. Thanks.

[driftdiver]

1. you see the swap as a good thing for the US.

[Toddsterpatriot]

Where did I say that? A link would be nice.

[Toddsterpatriot]

And while you’re at it, show me how it would be bad for the US. Be specific.

[timestax]

back to the top !

[Captain Kirk]

This has nothing to do with Bernanke. One of Obama's very first acts as president was to open a $100 million line of credit to the World Bank. Ron Paul's lack of knowledge on almost any subject is astounding.

Yes, it does. Bernanke's credit line to Greece is over and above any earlier credit line provided by Obama .

[timestax]

$$$$$$$$$$$$$$$$$ DOWN the toilet