or so, we've seen more tools emerge. We've got these swap lines were put in place late in 2008. So you've got this Euro-dollar market that exists outside of the US. So basically any dollar that's originated at a bank outside of the US banking system is a Euro-dollar credit. So a bank in France makes a dollar loan to a French citizen. Well, prior to 2008, those dollar loans were not collateralized with dollar holdings. They're not collateralized with dollar holdings now either. But the banks were net short dollars against their Euro collateral prior to 2008. And in 2008, there was this huge dollar collateral call for which the global banks were not. They did not have the collateral, which mean they had to use their euros to go and buy dollars from the dollar system. And there was just a shortage of dollars. So the dollar rose tremendously. There was a shortage of high-quality collateral like T-bills and treasury bonds. And so there was a run on that. And so the Fed implemented these (21/45)
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