Global Feed Post Login
Replying to Avatar Mike Brock

For what it's worth, claims that the Fed is turning the money printer on to bail out the banks doesn't seem quite accurate.

1. Because they're explicitly allowing these institutions to fail.

2. The banks have sufficient assets on their balance sheets to pay out all deposits. The only issue is the maturity dates on those assets, relative to deposit durations. The mechanisms they appear to be using do not seem to involve any injection of taxpayer capital or money creation by the Fed.

Avatar
replete sumo 2y ago

If the Fed allows the banks to borrow against their assets at par, isn't that money printing?

Reply to this note

Please Login to reply.

Discussion

No replies yet.