The Fed Just Imposed Financial Austerity on the States

``Bizarrely, the Fed and its regulatory siblings included investment grade corporate bonds, the majority of which do not trade on an exchange, and more stunningly, stocks in the Russell 1000, as meeting the definition of high quality liquid assets, while excluding all municipal bonds -- even general obligation municipal bonds from states with a far higher credit standing and safety profile than BBB-rated corporate bonds.'' -- Yay for separation of government and monetary policy...