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Economic Research

One Year Later, Still Crunch Time

It was little over a year ago (August 9, 2007) when short-term credit markets froze and the ECB, Fed and BoJ started pumping billions of dollars into their systems to ease the liquidity crisis associated with the subprime crisis. In the following days, the three central banks continued their injections of liquidity into the money markets. Various mortgage originators, inside and outside the U.S. started drawing billions from their credit lines and filing for bankruptcy. On August 17 2007, in an unscheduled meeting, the[...]

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