There has already been a run on the banks the detail of which are not stated and Covid 19 means that the finger is not pointing at those companies involved in the 2008 meltdown that continued on their merry way with the expectation of a financial crash leading to depression.
‘The US Federal Reserve is acting as central banker to the world by seeking to provide the global financial system with the dollar liquidity it needs to avoid seizing up.
In its latest measure to combat the economic fallout from the coronarvirus pandemic, the Fed said on Tuesday (March 31) it was establishing a temporary repurchase agreement facility to allow foreign central banks to swap any Treasury securities they hold for cash. That’s yet another step beyond the actions it took in the 2008 financial crisis.
“To the Federal Reserve’s credit, it is playing the role of central banker to the world rather than denying it and trying to ward it off,” said former Fed official Ted Truman, who is now a senior fellow at the Peterson Institute for International Economics in Washington.
The Fed is trying to prevent a liquidity squeeze amid a worldwide rush into dollars, as the virus wreaks havoc on a global economy that is heavily dependent on the greenback as its linchpin.’