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TARP , TALF , QE - Infinity , what will be plan neXt , as in "X"

catch22catch22
edited March 2020 in Fund Discussions
Really short on time this AM, a bit sloppy for this post.

TARP and TALF were the monetary back stops for the 2008 market melt, the last chance at the time. Aside from the state of the equity side of life and the focus there; the forgotten parts regular investors don't think about much; is the health of the "other" monetary areas of the economy. There are the every day, don't pay much attention to; large institution that are important in many aspects of everyday life; being large insurance companies and pension funds.
One example: As a result of the 2008 market melt, Lincoln Financial Group purchased a small S & L in order to qualify for a bail out package. The organization was at the edge of collapse.
More on this and a few links are at this April, 2017 MFO page.

The below Fed Act is a broad search, so you'll have to pick and choose by newest date for likely best review; if you have interest in this.

Federal Reserve Act, Sect. 13(3)

CNBC article

Overview, IMHO: Gonna have to be a pile of fiscal action via Congress, aside from whatever is "legal" from the Treasury or Fed. Reserve.
Will repeat, Treasury check to the adults; and $2 Trillion other money; as a start

Hey, what do you think???

Take care of you and yours,
Catch

Comments

  • WABACWABAC
    I agree on the fiscal angle. As do most of the people quoted at your CNBC link. Lots of pithy comments there in general.

    My favorite:
    Clemons said he doesn’t see signs of a market bottom forming but he does see consistency with the crisis markets of 2008 and 2009 “where prices were not only divorced from reality but reality was divorced from reality.”
  • catch22catch22
    Hi @WABAC
    CNBC link may not be best, but there were pieces of value somewhere inside.
    In a hurry this AM.
  • catch22catch22
    If one discovers valid articles related to what would be a TARP or TALF (original programs links at first page above), version II, please let us know. I see @Mark recently posted regarding mutual fund money market funds back stops. Something similar to this, I suppose.
    Please, no click-bait stories from "x" and then when travelling to the site, one has to "sign-up" to discover the "magic". Valid sources please.
    Ok, chore time here.
    Thank you,
    Catch
  • msf
    CNBC article, Monday:
    "In the days ahead, Jones expects the Fed to institute some type of facility to address commercial paper."

    NYTimes article Wednesday (link comes from Mark's MMF article):
    "Taking a page from its 2008 financial crisis playbook, the Fed said it would backstop the $1.13 trillion market for commercial paper, a key funding source used by companies to cover payroll and day-to-day operations."

    https://www.nytimes.com/2020/03/17/business/economy/federal-reserve-coronavirus.html
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