(an email exchange)
On Fri, May 2, 2008 at 9:44 AM, Jeff wrote:
The Fed announced today that, starting May 5th, it was expanding its cash-loan biweekly auctions for banks (Term Auction Facility or TAF) by 50% to $75 billion each auction.Ãƒâ€šÃ‚Â This was the third increase in the four months the program has existed.Ãƒâ€šÃ‚Â The Fed also expanded the collateral accepted for the US Treasuries to include other AAA private-label mbs securities,
good, it should be open to any member bank assets- they are all occ legal anyway
in addition to the residential and commercial mbs and agency CMOs that it already accepts.Ãƒâ€šÃ‚Â It also increased its currency swap facility with the ECB to $50 billion and with the Swiss National Bank to $12 billion and extended the terms through January 2009.Ãƒâ€šÃ‚Â
interesting that the ECB needs more dollars.Ãƒâ€šÃ‚Â if there is going to be a systemic failure it’s in the eurozone.