tag:blogger.com,1999:blog-2761684730989137546.post1075052523078463868..comments2024-03-29T02:19:19.866-04:00Comments on Mike Norman Economics: 75% of the $454 Billion CARES Act Money Never Went to the Fed; It Was Invested by a Mnuchin Slush Fund Called the ESF — Pam Martens and Russ Martensmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-2761684730989137546.post-60201525625829324452020-11-29T18:58:19.357-05:002020-11-29T18:58:19.357-05:00Ooooooh, what happens if it gets “above 8B or so”?...Ooooooh, what happens if it gets “above 8B or so”? Explosion? Locusts? Perpetual darkness?<br />Greghttps://www.blogger.com/profile/03139782404004492965noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-39693215668355254312020-11-29T10:49:25.979-05:002020-11-29T10:49:25.979-05:00No they don’t they sweep excess capital multiple t...No they don’t they sweep excess capital multiple transactions per month it shows up as a TGA deposit in the DTS often... they can’t let it get much above 8B or so ..., and they don’t..,Matt Frankohttps://www.blogger.com/profile/11082502216984169113noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-50871303442396633752020-11-29T10:43:45.974-05:002020-11-29T10:43:45.974-05:00“It would not be in accordance with statutory regu...“It would not be in accordance with statutory regulations...“<br /><br />So? Like that should matter?<br /><br /><br />Just change or ignore statutory regulations, happens all the time. I don’t give a rip about statutory regulations in this area and neither do the people working in these arenas if the “statutory regulations” prevent them from achieving their goalsGreghttps://www.blogger.com/profile/03139782404004492965noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-47963967827103620152020-11-28T22:02:57.897-05:002020-11-28T22:02:57.897-05:00Ask Pam and Russ what the maximin capital balance ...Ask Pam and Russ what the maximin capital balance the Fed can possess is...<br /><br />Or better yet ask Pam and Russ to define capital...<br /><br />They would say “duhaghg duh duGhst...”Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-45327661257129056412020-11-28T22:00:21.890-05:002020-11-28T22:00:21.890-05:00It would not be in accordance with statutory regul...It would not be in accordance with statutory regulations...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-76149346614763537742020-11-28T13:37:49.957-05:002020-11-28T13:37:49.957-05:00Legally impossible is a non sense term, the word y...Legally impossible is a non sense term, the word you are looking for is illegal. We already know that this administration ignores every law it finds inconvenient to its goals<br /><br />We know that statute you refer can be changed or ignored Greghttps://www.blogger.com/profile/03139782404004492965noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-76981739395710338872020-11-28T09:08:34.962-05:002020-11-28T09:08:34.962-05:00And another thing if it “went to the Fed” it would...And another thing if it “went to the Fed” it would show up as excess capital at the Fed of 400b and Fed is statutorily required to transfer capital balance above 8B immediately back to TGA (which is where it is anyway) ...so this “went to Fed” idea is legally impossible ...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-69037058311887670722020-11-28T08:02:11.842-05:002020-11-28T08:02:11.842-05:00Do Pam and Russ have any Accounting background?Do Pam and Russ have any Accounting background?Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-25621770060120617342020-11-28T08:00:52.054-05:002020-11-28T08:00:52.054-05:00The Treasury schema for its Daily Treasury Stateme...The Treasury schema for its Daily Treasury Statement identifies the source of funds on the deposit side and the direction of funds in the withdrawal side.., ie there is no deposit for the “ESF” there is only a withdrawal for the “ESF”...<br /><br />There is over 1.5T in the TGA there is more than enough USD balance to provide $400B to the Fed if it needed it...<br /><br />The policy is ending and I guess the Treasury will reduce the TGA accordingly... Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-39943025132930515372020-11-28T07:55:05.604-05:002020-11-28T07:55:05.604-05:00The USDs are in the TGA they are accounted for.,, ...The USDs are in the TGA they are accounted for.,, they’ve never been withdrawn this one of the reasons the TGA balance has remained unprecedentedly high... creating a “reserve drain”... iow Reserves at Depositories have remained lower ....<br /><br />Ending these loan backstops will allow Treasury to spend down the TGA... exacerbating the current credit contraction as banks will now have to allocate capital to these newly increased risk free reserve assets.,,Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-5402606533219276182020-11-27T11:40:38.408-05:002020-11-27T11:40:38.408-05:00The Fed never needed it in the first place. This i...The Fed never needed it in the first place. This is the real story. And Mnuchin's a crony capitalist? What else is new?Mike Normanhttps://www.blogger.com/profile/15682385425253710230noreply@blogger.com