tag:blogger.com,1999:blog-2499715909956774229.post8753515707943200277..comments2024-03-22T22:37:02.639-07:00Comments on Stephen Williamson: New Monetarist Economics: Update on Discount Window LendingStephen Williamsonhttp://www.blogger.com/profile/01434465858419028592noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2499715909956774229.post-1493368633017589712011-12-06T15:05:56.674-08:002011-12-06T15:05:56.674-08:00When can we expect the professor of righteous indi...When can we expect the professor of righteous indignation to recognize that this lending was done at a penalty rate?<br /><br />http://delong.typepad.com/sdj/2011/11/yes-the-us-government-ought-to-own-the-banks-now.htmlPhil Rothmanhttp://personal.ecu.edu/rothmanp/rothman.htmnoreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-37248610622049524842011-12-06T14:02:12.315-08:002011-12-06T14:02:12.315-08:00Excellent. The 0.20% loans are all on the same day...Excellent. The 0.20% loans are all on the same day, January 2, 2009. What happened then. Otherwise, after that, they are consistently all at 0.25%, just as arbitrage would tell you. No stigma premium. Looks like that Bloomberg article was mostly nonsense.Stephen Williamsonhttps://www.blogger.com/profile/01434465858419028592noreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-88581424387959869162011-12-06T13:44:44.323-08:002011-12-06T13:44:44.323-08:00I don't know where the 0.01% number came from,...I don't know where the 0.01% number came from, but there was no TAF lending at this rate. The lowest rate at the TAF was 0.20%, and in all but one auction the rate was 0.25% or higher. The results from each auction are available in an Excel file at:<br /><br />http://federalreserve.gov/newsevents/reform_taf.htm<br /><br />I would guess the 0.01% number corresponds to something like that TSLF Options Program, where institutions could bid for the option to borrow securities in the future, and was not a true lending rate.Anonymousnoreply@blogger.com