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As dollar woes get worse, why don't the Fed's swap lines work? Let's answer that question.

Eurodollar University

00:00

The City Group Discussion - Dollar Swaps

The interbank, intraday, intergeographical dealer system was breaking down. Funds that may have been available here in certain parts of the Fed funds market or repo were useless because they could not move anywhere. Money markets before the crisis seemed to act as if a singular money market. Instead, they all started to break down and fragmentBecause dealers did not and could not operate in the fashion that they were before.

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