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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Mike Johnston who wrote (92497)3/19/2008 5:39:22 PM
From: Real Man  Read Replies (1) of 110194
 
Would like to hear what Bart says, but maybe the Fed needs
cash for this:

ny.frb.org

If the Fed sells part of SOMA securities but does not erase
the cash, then no actual drain happens.

"The PDCF will provide overnight funding to primary dealers in
exchange for a specified range of collateral, including all
collateral eligible for tri-party repurchase agreements
arranged by the Federal Reserve Bank of New York, as well as
all investment-grade corporate securities, municipal
securities, mortgage-backed securities and asset-backed
securities for which a price is available"
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