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only **$1.2 billion** in @federalreserve loans to municipalities, out of ***$500 billion*** allocated by Congress. that's 0.2%. THAT ROUNDS TO 0%
PS $16 trillion on Fed balance sheet under Municipal Lending Facility includes some Treasury mumbo jumbo https://www.federalreserve.gov/releases/h41/current/h41.htm
PS $16 trillion on Fed balance sheet under Municipal Lending Facility includes some Treasury mumbo jumbo https://www.federalreserve.gov/releases/h41/current/h41.htm
"The Federal Reserve established the Municipal Liquidity Facility to help state and local governments better manage cash flow pressures in order to continue to serve households and businesses in their communities."
good luck with that! https://www.federalreserve.gov/monetarypolicy/muni.htm
good luck with that! https://www.federalreserve.gov/monetarypolicy/muni.htm
TWO MONTHS after facility announced ONE loan, a loan to Chicago!!!
at same time, state and local governments across US laying off millions of workers, many in education, and cutting services. their budgets are in crisis!! https://www.pewtrusts.org/en/research-and-analysis/articles/2020/06/16/how-covid-19-is-driving-big-job-losses-in-state-and-local-government
at same time, state and local governments across US laying off millions of workers, many in education, and cutting services. their budgets are in crisis!! https://www.pewtrusts.org/en/research-and-analysis/articles/2020/06/16/how-covid-19-is-driving-big-job-losses-in-state-and-local-government
everyone is arguing about how to re-start schools in the fall. guess what? regardless of the plan will be hard with MANY fewer teachers and school administrators. MUCH HARDER.
with a pandemic, schools need MORE staff, need MORE money not less: https://www.nytimes.com/2020/07/09/us/schools-reopening-trump.html
with a pandemic, schools need MORE staff, need MORE money not less: https://www.nytimes.com/2020/07/09/us/schools-reopening-trump.html
municipalities most in need due to Covid-19 crisis, struggling most to get it (from investors and Congress).
math is brutal: 1) crashing tax revenues - sales and business taxes 2) skyrocketing costs - public health, safety net, etc. 3) epic uncertainty https://twitter.com/Claudia_Sahm/status/1281556075725062144?s=20
math is brutal: 1) crashing tax revenues - sales and business taxes 2) skyrocketing costs - public health, safety net, etc. 3) epic uncertainty https://twitter.com/Claudia_Sahm/status/1281556075725062144?s=20
agree, with @DebraWexler /thread https://twitter.com/DebraWexler_/status/1281556390339911681?s=20
back to the Fed ... in April, I wrote “Lending directly to states and cities ... is a big move that puts the Fed deep into uncharted territory. Never before has the central bank made loans directly to Main Street.” would've been nice https://www.nytimes.com/2020/04/23/opinion/coronavirus-federal-reserve-cities.html
best: Congress IMMEDIATELY send grants, money plain and simple for municipalities to use as they need to ... https://twitter.com/ReviseNRetweet/status/1281555920242331649?s=20 LOTS OF MONEY
yes, borrowing costs declined after huge spike early in pandemic for many (see note in tweet) ... costs REMAIN VERY HIGH for triple B's (aka last rung above junk bonds). municipalities hardest hit by Covid-19 falling down rungs fast https://twitter.com/ReviseNRetweet/status/1281553856967704579?s=20
finally, crushing to see Congress and Fed do nothing to help municipalities. communities suffered financially in Great Recession. took years to recover.
WORSE NOW! SEND MONEY NOT LOANS
WORSE NOW! SEND MONEY NOT LOANS
one correction ... that first goddamn loan went to the STATE OF ILLINOIS not Chicago ...
now, I'll bet most is for the city, and why do you think they have BBB rating and went to the Fed?? yeah Chicago
now, I'll bet most is for the city, and why do you think they have BBB rating and went to the Fed?? yeah Chicago
