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Lombard Street and pandemics

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Credit Suisse/Zoltan Pozsar/3-17-2020

graphic image bank of trading terminals descending trend line words financial crash

“The Fed needs to offer dollars on a daily frequency through the swap lines, and other central banks need to lend dollars on to both banks and non-banks. The Fed needs to broaden access to the swap lines to other jurisdictions as dollar funding needs are large in Scandinavia, Southeast Asia, Australia and South America, not just in the G-7. The dollar funding needs of both banks and non-banks is what’s at risk and the assets that are being funded are U.S. assets – Treasuries, MBS and credit – so the Fed has a vested interest.”

USAGOLD note:  In short, the Fed must bail out the world and bail it out now or face the consequences, according to Mr. Pozsar in this panic memorandum……