Why Eurodollars Might Be Ground Zero for De-Globalization, and the Market Sell-Off

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There's a huge market out there that doesn't get much attention: Eurodollars. These have nothing to do with the euro-dollar exchange rate. Instead, eurodollars are U.S. dollar-denominated deposits at foreign banks and overseas branches of American banks. They're effectively a source of dollars that operates outside the control of the U.S., and have at various times been blamed for exacerbating interbank lending crunches. Jeff Snider, Head of Global Research at Alhambra, has a theory that recent market volatility might have its roots in some eurodollar drama. He speaks with Odd Lots about how this market grew in tandem with globalization, and how we should be thinking about it now.

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