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2019-05-23

William White, the BIS’s former chief economist

“It ­reminds me of what happened in 2008 to 2009 when European banks were ­financing long-term assets in the US with short-term dollar debt. They had a huge liquidity problem. This time the trouble is in Asia, and I am afraid that Asian banks might have to sell a lot of assets in fire-sale conditions.”
The Fed saved the day in 2008 by ­extending emergency dollar liquidity to fellow central banks through swap lines. “It is not clear whether Trump and Congress would let the Fed do that again,” 

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