Wednesday, April 16, 2008

JCT - The man who saved the world

At the morning of August 9th last year Jean-Claude Trichet, the president of the ECB, stepped in and provided unlimited funds for financial institutions. His actions have saved the industrialized world from a financial meltdown of colossal proportions and are still the only really effective measure countering the financial turbulences to date.

Here is a first hand account from the engagement of the ECB during the current financial turmoil. I have picked some of the pearls:

"...First liquidity response came on morning of 9th of August last year...overnight rate of LIBOR increased significantly...The ECB injected liquidity into the market with full allotment ( 95 bn euro or $130 bn)."

on credit derivatives:
"...the resilience of that time (bursting of the bubble) had been wrongly attributed to the use of financial derivatives. Now of course is the real test."

click for video

With JCT as the most influential central banker of our time I am now more confident that the financial system can weather the storm.

source: video

source: The Big Picture
Barry Ritholtz

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