Opinion| Lawrence David| While visiting with Rachel Maddow, reviled Speaker of the House Nancy Pelosi took a victory lap yesterday trying to take credit for getting a few hundred billion dollars in “goodies” for her donors.
Speaker Pelosi: “Congress will exercise its oversight. We will have our panel of House —appointed by the House in realtime to make sure we know where those funds are being expended.”
“The bill was jiu-jitsu. We took the bill and turned it around. So they signed it in the White House as if they had some real provenance as to what was in the bill.
“They knew the bill was needed, and again, we put our conditions on any assistance that was going to industries in our country because we wanted to make sure that workers came first and they did in the bill. And they do in the bill.”
Brilliant move by the not-so-foxy Speaker! Eh… maybe not so much.
(Bloomberg Opinion) …But it’s the alphabet soup of new programs that deserve special consideration, as they could have profound long-term consequences for the functioning of the Fed and the allocation of capital in financial markets. Specifically, these are:
CPFF (Commercial Paper Funding Facility) – buying commercial paper from the issuer. PMCCF (Primary Market Corporate Credit Facility) – buying corporate bonds from the issuer. TALF (Term Asset-Backed Securities Loan Facility) – funding backstop for asset-backed securities. SMCCF (Secondary Market Corporate Credit Facility) – buying corporate bonds and bond ETFs in the secondary market. MSBLP (Main Street Business Lending Program) – Details are to come, but it will lend to eligible small and medium-size businesses, complementing efforts by the Small Business Association.
To put it bluntly, the Fed isn’t allowed to do any of this. The central bank is only allowed to purchase or lend against securities that have government guarantee…