The World Is Hit With A $12 Trillion Dollar Margin Call

Read more on this subject: Central Banks/Banking
News Story Source: Zero Hedge – Tyler Durden
Earlier today Trump declared that Sunday would be a national day of prayer.

TODAY IS A NATIONAL DAY OF PRAYER. GOD BLESS EVERYONE!
— Donald J. Trump (@realDonaldTrump) March 15, 2020

With Americans having far bigger concerns on their minds, we doubt many will have time for prayer today, although there is one person who could do with some divine assistance: Fed chair Jerome Powell.

And there is a specific reason for that… or rather 12 trillion reasons.

But first, let's back up to a post we write back in October 2009 explaining how the Fed's emergency response during the financial crisis – which included credit facilities backed by corporate bonds and even stocks, all the way to unlimited FX swap lines with foreign central banks – was first and foremost in response to a massive dollar margin call that resulted in the aftermath of the Lehman and AIG collapse as conventional cross-border funding pathways froze up, forcing the Fed to step in and flood th
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