In over their heads
October 21, 2008 at 12:37 PM EDT
[Skip to the end] The Fed and Treasury decided ‘the problem’ was the LIBOR/Fed funds spread and threw everything they had at it. What finally did the trick was the Fed’s unlimited swap lines with the MOF, BOJ, ECB, and SNB. Unfortunately that turned a technical problem into a fundamental problem, as I’ve previously described. Back tracking to why [...]
