Tuesday, October 13, 2009

The Unwinding Strategy Laid Out by Bernanke

I was worried that the FED had ignored the problem of unwinding their new positions, but Bernanke has addressed it:

Go to Slide 7 at the bottom of the page and see the unfallable plan:
Slide 7
Exit Strategy

  • Wind-down of short-term lending
  • Interest on reserves
  • Reverse repurchase agreements
  • Time deposits for depository institutions
  • Runoffs and asset sales
Whew, they got it under control.


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