Federal Reserve to lend additional $1 trillion a day to large banks | PBS NewsHour
The Fed also announced Friday that it would expand an emergency lending program, which it just launched Wednesday, to loan money to banks, which would use the funds to purchase highly rated municipal bonds from money market mutual funds or from muni bond funds. The goal is to stabilize the $3.8 trillion muni bond market and ensure states and cities and other public entities, including hospitals, can borrow at low cost.
The emergency lending program, known as the Money Market Mutual Fund Liquidity Facility, was first used during the 2008 financial crisis, but its expansion to include muni bonds is a new step that wasn’t taken back then.
States and cities are facing a looming cash crunch as revenue from sales taxes and other levies are likely to fall sharply in the coming weeks and months. At the same time, many public institutions are facing higher costs, particularly hospitals and other health programs.
Never enough money for a social safety net, but always enough for huge corporations and the 1 percent. No one is asking how this will be paid back.
If the current debts are unpayable, what makes anyone believe that even BIGGER debts will be payable?