Fed Panics, Announces “Coordinated” Daily US Dollar Swap Lines To Ease Banking Crisis

• Fed Panics, Announces “Coordinated” Daily US Dollar Swap Lines To Ease Banking Crisis
  by Tyler Durden, https://www.zerohedge.com/
  In January 2022, just around the time the Fed announced it was launching its most aggressive tightening campaign since Volcker, we warned “remember, every Fed tightening cycle ends in disaster and then, much more Fed easing”
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  Fast forward to just over a week ago, when the Fed tightening cycle indeed ended in disaster when SIVB became the first (of many) banks to fail, triggering a chain of dominoes that culminated with today’s collapse of Credit Suisse – a systematically important bank with $600BN in assets.
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  And then, at 5pm, the easing officially began, because while a bunch of laughable macrotourists were arguing on FinTwit whether last week’s record surge in the Fed’s discount window was QE or wasn’t QE  (answer: it didn’t matter, because as we said, it assured what comes next), the Fed finally capitulated, just as we warned over and over and over that it would…
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  … and at exactly 5pm the Fed announced “coordinated central bank action to enhance the provision of U.S. dollar liquidity” by opening daily Dollar Swap lines with all major central banks, in a carbon copy repeat of the Fed’s panicked post-covid crisis policy response playbook.
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If the Fed does not contain the regional bank collapse, there will be another great depression.

Small/medium banks account for 50% of US commercial and industrial lending, 60% of residential real estate lending, 80% of commercial real estate lending, and 45% of consumer lending pic.twitter.com/wzTMHxSnXI

— zerohedge (@zerohedge) March 18, 2023

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