Fed will monetize stocks for its primary dealer banks

Section:

Fed to Lend Against Stocks and Bonds in Bid to Stabilize Markets

By James Politi, Brendan Greeley, Colby Smith, and Joe Rennison
Financial Times, London
Tuesday, March 17, 2020

The US Federal Reserve took new action tonight to shore up financial markets by allowing approved dealers in government debt to borrow cash secured against some stocks, municipal debt, and higher-rated corporate bonds.

The Fed said in a statement that the facility would "allow primary dealers to support smooth market functioning and facilitate the availability of credit to businesses and households" in the face of the coronavirus outbreak.

... Dispatch continues below ...


ADVERTISEMENT

Buy metals at GoldMoney and enjoy international storage

GoldMoney was established in 2001 by James and Geoff Turk and is safeguarding more than $1.7 billion in metals and currencies. Buy gold, silver, platinum, and palladium from GoldMoney over the Internet and store them in vaults in Canada, Hong Kong, Singapore, Switzerland, and the United Kingdom, ­taking advantage of GoldMoney's low storage rates, among the most competitive in the industry. GoldMoney also offers delivery of 100-gram and 1-kilogram gold bars and 1-kilogram silver bars. To learn more, please visit:

http://www.goldmoney.com/?gmrefcode=gata



The new facility will offer funding with maturities up to 90 days starting on March 20 and be in place for at least six months. Credit extended under the new facility for primary dealers would be collateralised by a "broad range" of investment grade debt, including commercial paper, municipal bonds, and equities. The interest rate charged would be the discount rate of 25 basis points.

The new facility was established with the approval of Steven Mnuchin, the US Treasury secretary. "The global coronavirus outbreak has contributed to significant financial market volatility," Mr. Mnuchin said in a statement, adding that the move would "help address illiquidity, mitigate disruptions in funding markets, support smooth market functioning, and help facilitate the availability of credit to American workers and businesses." ...

... For the remainder of the report:

https://www.ft.com/content/cf485398-689d-11ea-800d-da70cff6e4d3

* * *

Toast to a free gold market
with great GATA-label wine

Wine carrying the label of the Gold Anti-Trust Action Committee, cases of which were awarded to three lucky donors in GATA's recent fundraising campaign, are now available for purchase by the case from Fay J Winery LLC in Texarkana, Texas. Each case has 12 bottles and the cost is $240, which includes shipping via Federal Express.

Here's what the bottles look like:

http://www.gata.org/files/GATA-4-wine-bottles.jpg

Buyers can compose their case by choosing as many as four varietals from the list here:

http://www.gata.org/files/FayJWineryVarietals.jpg

GATA will receive a commission on each case of GATA-label wine sold. So if you like wine and buy it anyway, why not buy it in a way that supports our work to achieve free and transparent markets in the monetary metals?

To order a case of GATA-label wine, please e-mail Fay J Winery at bagman1236@aol.com.

* * *

Support GATA by purchasing
Stuart Englert's "Rigged"

"Rigged" is a concise explanation of government's currency market rigging policy and extensively credits GATA's work exposing it. Ten percent of sales proceeds are contributed to GATA. Buy a copy for $14.99 through Amazon --

https://www.amazon.com/Rigged-Exposing-Largest-Financial-History/dp/1651...

-- or for an additional $3 and a penny buy an autographed copy from Englert himself by contacting him at srenglert@comcast.net.

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16