Tuesday, March 11, 2008

Socialization of the US Markets Accelerates with the Fed's latest tool the TSLF!

TAF gets tougher as it is now supplemented with the Term Securities Lending Facility or TSLF- the latest instrument which allows the Federal Reserve to lend up to $200 billion and accept as collateral- agency and private residential securities or "non-agency AAA/Aaa-rated private-label residential MBS"!!! You read it right-garbage papers!

You can read more from Bloomberg the updates including the Fed’s Text on the novel “bridge” financing.

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