Will be interesting to see how long these funds stay in there. Maybe this is where SIVB assets got parked "not at tax payer expense". Could also be from FRC.
I will say while the net effect is the same, the fundamentals are different here. QE is the fed buying low risk assets at auction in time intervals. Discount window and and the new facility are emergency cash needs by banks. One puts constant tailwind on asset inflation, the other stops volatile asset deflation (fire sale).
Will be interesting to see how long these funds stay in there. Maybe this is where SIVB assets got parked "not at tax payer expense". Could also be from FRC.
I will say while the net effect is the same, the fundamentals are different here. QE is the fed buying low risk assets at auction in time intervals. Discount window and and the new facility are emergency cash needs by banks. One puts constant tailwind on asset inflation, the other stops volatile asset deflation (fire sale).