Wednesday, March 18, 2020

BREAKING Treasury Secretary Mnuchin Announces Plan to Back Up Money Market Funds

Treasury Secretary Steve Mnuchin has just issued a statement announcing that he sent Federal Reserve Board Chairman Jerome Powell a letter approving the establishment of the Money Market Mutual Fund Liquidity Facility to provide liquidity to the financial system under section 13(3) of the Federal Reserve Act.

This will provide liquidity to Money Market Mutual Funds.

Under the plan, the Federal Reserve Bank of Boston would lend to eligible borrowers, taking as collateral certain types of assets purchased by the borrower.

The Department of the Treasury will provide $10 billion of credit protection from the Exchange Stabilization Fund to Fed Bank of Boston for this program.

Mnuchin said, "Money market funds are important investment tools for American families and businesses. The establishment of the MMLF will enhance the liquidity and smooth functioning of money markets, support the flow of credit to hard working Americans, and help stabilize the broader financial system.”

Note: It looks to me like money market funds were under heavy withdrawal pressure which was putting pressure on the Treasury securities market and non-Treasury debt, such as corporate debt, commercial paper and government agency debt.



  1. Based on this study that says 86% of the Corona virus cases are undetected (6 of 7), lets do a little math exercise on how virulent it is….

    Use these numbers updated on the NY Post WWW site:

    It says there are approximately 200K “confirmed cases” worldwide so if 86% are undetected, there are actually 200K/0.15 = 1,333,333 million cases in the world right now if 6 of 7 study is even remotely accurate

    Now obviously asymotomatic cases have no symptoms (& will never know to go be tested unless happen to think they have very very very good reason to think exposure like being exposed to a symptomatic person)

    There are 8000 approximately confirmed dead. We can argue, as some have, that they may not all be 100% Corona attributable due to so many having preexsisting medical conditions. But lets accept that figure for now….

    SO to calculate the “mortality rate” for the Corona virus taking into account 6 of 7 asymptomatic cases the math is 8000 / 1333333 = 0.006

    Or more simply put, that’s 0.6%

    Maybe slight worse than the regular flu’s estimated 0.1%

    I doubt it since so many “Corona” death had so many other conditions due to the advanced age of the population involved (very much above 60) anyways that probably killed them first that finding a “corona” bug in them is a nice excuse to categorize the death……especially in socialized medicine systems

    Is this enough to justify the economic chaos, love of liberty, ruined lives, and yes MORE deaths later on due the issues stress, unemployment, & poverty cause in the long run?

    1. Remember that there is a flu vaccine that helps push that flu mortality rate down to 0.1%

      As better drugs for covid-19 come out, and there is already hopeful progress, the mortality rate will be pushed even lower, so 0.6% is perhaps even too high.

      To your larger point, amen. This reaction is ridiculous. But it's not driven by governments. The people wanted it.

  2. The Central Banks are bailing out everything and in turn becoming more powerful.