It seems to me that the solution is easy for them, the solution to every long-term debt problem...extend and pretend. they will extend the tenor of the BTFD and it will ultimately become simply another tool in the Fed's toolkit. remember, Milton Friedman's words, "there is nothing so permanent as a temporary government program."
"Clearly, Yellen’s preference in this regard is for Jamie Dimon to just “acquire” every small bank in the country—at taxpayer expense—and then reap massive profits, thereby creating a *checks notes* “safe and stable banking system.”.." nailed it!!!
"The BTFP offers loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging any collateral eligible for purchase by the Federal Reserve Banks in open market operations (see 12 CFR 201.108(b)), such as U.S. Treasuries, U.S. agency securities, and U.S. agency mortgage-backed securities. These assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution’s need to quickly sell those securities in times of stress." I'm not sure why this is such a big problem since these assets are still held on the banks' books and marked to market if they are held as "For Sale". If they are held as investments, they may not have the marks, but they are a drag on earnings.
The Bank Of America last year sent me a bogus 1099 for $13k. I went to a branch twice. And called the bank. The only info the had was 3 credit cards that I never owned, on a report that I had stopped paying on them in 2013. No other info. Nothing on my 3 credit reports on these 3 cards.
That is how they are "clearing" some of their debt.
Great article! I recently read FED UP by @dimartinobooth. It is a close-up and frightening look at how clueless the Fed is from an insider who worked at the Dallas Fed from 2006-2015. I highly recommend it.
It seems to me that the solution is easy for them, the solution to every long-term debt problem...extend and pretend. they will extend the tenor of the BTFD and it will ultimately become simply another tool in the Fed's toolkit. remember, Milton Friedman's words, "there is nothing so permanent as a temporary government program."
"Clearly, Yellen’s preference in this regard is for Jamie Dimon to just “acquire” every small bank in the country—at taxpayer expense—and then reap massive profits, thereby creating a *checks notes* “safe and stable banking system.”.." nailed it!!!
You don’t need a plan when you’re paid to enact the ACTUAL plan: to collapse & destroy the U.S. dollar.
"The BTFP offers loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging any collateral eligible for purchase by the Federal Reserve Banks in open market operations (see 12 CFR 201.108(b)), such as U.S. Treasuries, U.S. agency securities, and U.S. agency mortgage-backed securities. These assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution’s need to quickly sell those securities in times of stress." I'm not sure why this is such a big problem since these assets are still held on the banks' books and marked to market if they are held as "For Sale". If they are held as investments, they may not have the marks, but they are a drag on earnings.
The Bank Of America last year sent me a bogus 1099 for $13k. I went to a branch twice. And called the bank. The only info the had was 3 credit cards that I never owned, on a report that I had stopped paying on them in 2013. No other info. Nothing on my 3 credit reports on these 3 cards.
That is how they are "clearing" some of their debt.
This would be much more meaningful if it had any actual data as to what the maturity schedules of the low yielding assets are.
Great article! I recently read FED UP by @dimartinobooth. It is a close-up and frightening look at how clueless the Fed is from an insider who worked at the Dallas Fed from 2006-2015. I highly recommend it.