What Do All These Terms Mean?
I’ll buy you lunch, if you know before reading each of these, what they mean and what they do. I’m astounded at what the Fed can do (and is doing).
What are all the tools the Federal Reserve have at their disposal or even worse, what tools have they been allowed to create literally out of thin air?
Here is a list of those tools. The article below will give an explanation of each tool.
- Near Zero Interest Rates
- Quantitative Easing
- Repurchase Agreements (Repo)
- U.S. Dollars Swap Lines
- Tapping into Capital and Liquidity Buffers
- Discount Window
- Commercial Paper Funding Facility (CPFF)
- Primary Dealer Credit Facility (PDCF)
- Money Market Mutual Fund Liquidity Facility (MMLF)
- Secondary Market Corporate Credit Facility (SMCCF)
- Term Asset-Backed Securities Loan Facility (TALF)
- Main Street Business Lending Program
- Foreign and International Authority (FIMA) Repo Facility
Isn’t it astonishing how many things we are bailing out?
Do you think taxes will go up in the future? What about inflation? Deflation? Or a little known term, disinflation?
Some day we will have to ‘pay the piper’ and it won’t be pretty. I’ve written before it will probably be our children and grandchildren that get hit the hardest from the financial decisions that are being made now.
See the full article: A glossary of the Federal Reserve’s full arsenal of ‘bazookas’
Next week: I’ll update you on Social Security.
