As I’ve said all along, it needs to be in unlimited quantities with a set interest rate.
It’s a pricing mechanism, not a quantity mechanism.
They also need to relax collateral requirements to include commercial and residential whole loans, and all other legal bank assets of solvent banks.
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>
> On Tue, Jul 29, 2008 at 4:05 AM, Andrea wrote:
>
> In case you haven’t seen this yet: A Fed study that finds that
> Taf has lowered Libor.
>
> http://www.newyorkfed.org/research/staff_reports/sr335.html
>
>
right, thanks, as if they needed to fund a study to figure that out!
It’s like doing a study that shows the repo rate goes down when the fed lowers its ‘stop’ on repo.
(Too bad they didn’t use this study to show they should set a rate for the TAF and let quantity float, instead of setting a quantity and having an auction.)
It’s this kind of expense that gives govt. a govt. spending negative connotation.
all the best!
warren
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