The Federal Reserve Board on Tuesday announced the creation of the Money Market Investor Funding Facility (MMIFF), which will support a private-sector initiative designed to provide liquidity to U.S. money market investors.
And MMIFF has big fat dollar bags that will milk the markets with liquidity for years to come. She carries double T. More importantly, she is fast, agile, she knows kung-fu.
In a very Japanese anime way, the MMIFF is facing the shadow banking beast. At least we have seen it, we have measured it, or so we think with an ease in credit spreads, to be a multi-T based beast, it is still moving fast, but I for one, find the current administration to have proven somewhat capable and nimble. Good for everyone.
They may have bungled Katrina, but for Shadow banking beast (yet to be named) they were almost ready!