Posted by WARREN MOSLER on October 20th, 2008
By Simon Kennedy and Anne-Sylvaine Chassany
Trichet acknowledged his own central bank had taken on risk by boosting liquidity and accepting lower-rated securities as collateral for loans.
``We're taking risks and we've made decisions that increased our risks, because we were facing a systemic liquidity crisis of first importance,'' he said. The ECB is an ``inspirer of confidence,'' Trichet said.
Yes, and now with the Fed's money via the swap lines, and into a slowing economy.