The Fed's Cure Risks Being Worse Than the Disease
[{"id": "flpwpsp", "text": "&gt;CPFF (Commercial Paper Funding Facility) \u2013 buying commercial paper from the issuer. PMCCF (Primary Market Corporate Credit Facility) \u2013 buying corporate bonds from the issuer. TALF (Term Asset-Backed Securities Loan Facility) \u2013 funding backstop for asset-backed securities. SMCCF (Secondary Market Corporate Credit Facility) \u2013 buying corporate bonds and bond ETFs in the secondary market. MSBLP (Main Street Business Lending Program) \u2013 Details are to come, but it will lend to eligible small and medium-size businesses, complementing efforts by the Small Business Association.\n\n&gt;To put it bluntly, the Fed isn\u2019t allowed to do any of this. The central bank is only allowed to purchase or lend against securities that have government guarantee. This includes Treasury securities, agency mortgage-backed securities and the debt issued by Fannie Mae and Freddie Mac. An argument can be made that can also include municipal securities, but nothing in the laundry list above.", "replies": [], "depth": 1}]