The Reverse Repo Facility and the Debt Ceiling

The FDIC has increased the amount of banks under very tough screws need from four to 43. That is still a lot more than what we've seen through March and April. I think money market funds have a better case telling regular people to invest in money market funds now that there is a bill issuance to actually invest in. And given the turbulence in the banking system just a few months ago, I think they have a very compelling marketing case. There are two reasons why the rebuild of treasury general account is not as dramatic or simplistically one on one related to dropping the equity markets as many want to picture.

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