The European Central Bank injected 348.6 billion euros ($501.5 billion) for two weeks to ease the year-end scramble for cash in the money markets. The so-called TED spread, the difference between the rates at which the government and banks pay for three-month loans, slid from last week's four-month high.
The Federal Reserve, in tandem with the ECB and other central banks such as the Bank of England, is adding liquidity to help undo a logjam in credit markets, starting with the first of four auctions of cash to banks yesterday. (Source: Bloomberg).
This is good news for the stock market.
More on http://www.peterdag.com/.
George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977
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