Indeed, they haven't. But they showed a willingness to buy "other stuff" in a crisis with TARP, to indirectly prop up equity values. To the extent that this is very much a real economy shock and not a financial shock, monetary policy may not do much. So what then?
perhaps someone who knows more about this (@unhygenicmacro , @ByrneHobart ) wants to weigh in ?
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Classic central banks. No, we're not "buying" stocks! Heavens no. We're just issuing an indefinite term, hundred cents in the dollar non-recourse loan against stocks. The ECB pioneered this with the Euro bailout.
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I kid a little. It does kind of depend on the terms of the loan - haircuts, recourse or not, etc. Recourse, I can't imagine the fed is going after the banks for non-payment and driving them into bankruptcy. So haircuts seem to be the main difference.
End of conversation
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