Re: new fed lending facility

(an interoffice email) > – any chance they would take discount window rate down intra-meeting (or before year end) seems they don’t have to with this new ‘facility.’ > – have u evaluated the “loan auction” story? Seems a lot like ‘standard’ repo apart from accepting pretty much anything as collateral from member banks in […]

Roubini blog

Roubini totally doesn’t get it. The point of CB intervention is to keep interest rates at their target rates, not to provide funds for lending, as described in previous posts. This plan will succeed at doing that, best I can tell. It’s all about price, not quantity. That’s all a CB can do. Also, insolvency […]