The BTFP is dead

Long live the BTFP!

From Tuomas Malinen’s Forecasting Newsletter.

Issues contributed:

• The Bank Term Funding Program (BTFP) ended, and I was wrong (sometimes you miss :)).

• However, the underlying issues of the banking sectors, in the U.S. and Europe, have not gone anywhere.

• It’s very likely that the BTFP will return, when recession arrives (unless some other bailout facility is enacted before that).