Neil MacKinnon on term auction facility

There's a real danger that this may not work. Both the Fed and the ECB have injected a lot of liquidity before, but the banks are hoarding it. We're still seeing all the signs of stress with Libor and the VIX [fear gauge] at very elevated levels. The reason is that people still don't know where the bodies are buried. This may be a Made-in-America credit crisis but the Americans have cleverly exported their sub-prime cancer to pension funds all over the world. The risk now is a recession on both sides of the Atlantic.

~ Neil MacKinnon, strategist at the ECU hedge fund group, "World Bankers Resort to Firebreak", Financial Times, December 16, 2007