Posted on 03/11/2020 12:15:32 PM PDT by Enlightened1
The Federal Reserve is again increasing the amount of money it’s providing to banks for overnight borrowing, raising the top level now to $175 billion.
In an announcement Wednesday afternoon, the New York Fed said it would boost the top level it provides in overnight operations to at least $175 billion from the $150 billion level it had just set Monday.
“Consistent with the FOMC directive to the Desk, these operations are intended to ensure that the supply of reserves remains ample and to mitigate the risk of money market pressures that could adversely affect policy implementation,” the Fed’s statement read. “They should help support smooth functioning of funding markets as market participants implement business resiliency plans in response to the coronavirus.”
In addition to the overnight facility, the Fed is extending its two-week repo of at least $45 billion, and is adding a one-month term repo of at least $50 billion. The latter move comes amid market demand for a longer-term commitment from the Fed amid market disruptions, tumbling Treasury yields and concerns over market functioning.
(Excerpt) Read more at cnbc.com ...
This makes the TARP look cheap.
It’s not printed. The paper comes later. They just put numbers into a computer now..............
This is the graft network in action.
It’s time to end the Fed.
Replace every last one of their worthless federal reserve notes with Treasury-issued US Notes backed by gold.
It’s money being lent with an interest rate for purposes of liquidity.
This is not another TARP.
It’s overnight money. They un-print it in the morning.
Taxpayers earned a nice profit on TARP.
“Even though the Fed slashed its discount rate to record lows during the onset of the Great Depression, the total stock of money held by the public collapsed by roughly a third from 1929 to 1933. This is why Milton Friedman blamed the Fed for not doing enough to avert the Great Depression. By flooding the banking system with newly created reserves (part of the “monetary base”), the Fed could have offset the massive cash withdrawals of the panicked public and kept the overall money stock constant.”
https://fee.org/articles/the-depression-youve-never-heard-of-1920-1921/
Yes but now there is a first tier in the ring that gets their grubby paws first on helicopter money.
The system is corrupt and broken.
Let the Fed get a NIRP, negative interest rate policy like POTUS wants. This puts $$$ directly into the consumer economy and begins reversing the national debt as well as wiping out the deficit.
After the FED collapses under NIRP, say 5 years, replace the piece of sh*t with gold backed US Notes.
Well, that is not happening like it did with 0, though. Remember how the FED gave tons of money to friends to spend on “anything,” because that could stimulate the economy? That was evil, but this is not.
People intimately familiar with the repo market say this is a grand form of money laundering. It’s evil. Not sure of your view angle.
The Fed needs to buy Mortgage Backed Securities to stabilize the home mortgage industry. Mortgage rate have increased .50% or more in 2 days. That means there are not any buyers for MBS and no liquidity.
This is not quantitative easing, which I have a problem with.
I don’t see a real downside to this move. Can you help me better understand? I’m with Milton Friedman in the quote I put in the earlier comment, but you may know something different
The repo market deals with bonds the investment banks hold in lieu of cash. The bonds are not holding their value so the Fed is pumping banks with thin air money to keep their balance sheets intact. But what it really is is free money for grifters inside bank boards who are losing bond collateral.
It’s equivalent to McCabe getting a book deal if he keeps his mouth shut or his wife getting a large Clinton backed donation to run for office which she’s not qualified for but the $$$ is placed to make the dirty cop stay dirty, as in drop all investigations and inquiries into Clinton related crime.
Think of it as a well-oiled network of slush funds.
I’m tied up at the moment but will find the authoritative source that provides details for study.
But no, it’s not good and it has the potential to cause a repeat of the financial collapse which democrats would love to foist on POTUS’s lap.
It’s not TARP, it just provides additional liquidity. Boeing announced that it drew down its $14B line of credit. Many firms will be dpong the same for the short term. This helps ease thkse moves and keeps the economy from stalling.
Not going to do a damn thing. The fact governments are acting so desperate tells me the pain is not done.
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