Central banks coordinating

[whosinpower]

http://www.zerohedge.com/news/global-liquidity-bailout-arrives-ecb-announces-emergency-liquidity-providing-operations-conjunc#comments

snip - Remember that dollar liquidity crunch Zero Hedge has been covering for the past month? Here is the denouement, in the form of the first global liquidity bailout of the world for 2011, on the 3 year anniversary of the Lehman collapse.

[MineralMan]

1. Well, the Dow seems to like it.

I don't understand it, but the DJIA is up sharply this morning. And that despite some crummy unemployment news.

I wish I understood this stuff better.

[whosinpower]

2. Sure it does

It is free money for the banks. The central banks are essentially printing money based on whatever collateral the troubled banks have....to infinity.

I too am not sure what it all means - could be an attempt to reign in gold and silver. Which it looks like it was successful.

For you and me - it means yet another infusion of money into the system, which one would think would lead to hyperinflation.....growth is depressed, so that holds the hyperinflation bug at bay. The wall that saves us from hyperinflation is the recession/depression - because that free money never finds its way to main street. (think TARP on a global scale coordinated through the central banks)

[Yavin4]

3. Precisely

High unemployment rates here in the U.S. allow these kinds of infusions to take place without kicking off hyper-inflation.

This post contains a graph which illustrates this:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=114x90599#90638

[golfguru]

4. DOW likes it because it pushes the can down the road

and avert immediate squeeze. Hopefully the injection of liquidity (more money loans) will enable the banks in dire straits to come out of it smelling like roses.

Then Greece, Portugal, Spain, Ireland & Italy will soon be the prospering & become leading economies! They surely have borrowed a lot!! Or....

Why they don't their governments just go the proven route to success of just printing money? Then there is no need to borrow! Zimbabwe has already shown us how that is done.

[dixiegrrrrl]

5. They are gonna need a bigger can.

and a much longer road.

[Po_d Mainiac]

7. Butt if the can is an ass? n/t

[Po_d Mainiac]

6. I'll go against the grain

It looks more like a short squeeze with a side of HFT's

Melt ups happen before the fall....

Index's up and bonds down equal confused market
YMMV