Noooooo, this was only a Repo. Short-term loan to inject liquidity. Uncle Sam gets repaid.
I was’nt discussing the Fed’s liquidity injection on Friday in post 62 — the original question was — Could the US economy take a $16B write off of the suspected sub-prime loans that are (or will be) non-performing paper?
My response to remind the person posting the question how big our economy, even the just the FedGov’s bloated chunk of it is, and that a 16B hit can’t even be termed a speed bump, let alone a catastrophe.
A panic in the markets OTH...