There is several hundred dollars worth of spare liquidity on the balance sheets of the biggest banks.
To the extent that banks like FRC get folded into the biggest ones like JPM, it spreads that liquidity around and allows the Fed to continue quantitative tightening for a bit longer.
Several HUNDRED dollars! Dang, big ballers over there
Lyn, hundred billion dolars, I guess.
Key question: What is the desired result and what are just the forces applied to get there?
Hypothesis:
Quantitative tightening = force applied
Merging of the banks = desired result
Agree?
#grownostr
