So Discount Window requires Mark To Market whereas BTFP marks value at Par? If so, more F’ing inflation coming as we pick up the tab for yet another hidden bailout.
It doesn't matter. The uniparty socialist US government is repeating all the mistakes of the socialist regimes of Latin America. The Fed is sending a thinly disguised warning that a crisis is inevitable, make sure that the lifeboats are ready to launch. Rick Santelli's chart is prescient.
Great information in this post! The concentration of power is obvious considering the absolute dismantle of DoddFrank Section 165 as the top 2 banks now hold 53% of all deposits...so much for the 10% total deposit rule! The top 5% hold over 83%. Its obvious we have a National bank and 5 conduits.
It certainly does have the feel of an imminent crisis they are trying to avoid/prevent. Alas, as the crises get bigger, it becomes that much harder. could be a bumpy ride
"Every depository institution is set up to borrow from the discount window by virtue of participation in the Federal Reserve System."
Are they really? If a bank needs to access the discount window in an emergency, but hasn't done so in the past, are they prepared to quickly do so, or would some "practice" be of value?
You quickly "hand-waved" away the Fed's reasoning on this issue, so I'm not sure if I'm ready to believe your argument.
So if they're going to douse the problem with liquidy liquidity, the stonk market will steadily go up for the next ten years?...Like the decade of 0% interest rates
Great article, and it is a perfect example of U.S. policymakers doing whatever it takes to keep the system afloat as discussed in The X Project’s latest article:
Its ridiculous. They are saying SVB didnt know how to. Thus the bailout and btfp program. And that if SVB knew how to, then it might not have blew up. This is the world we live in
So Discount Window requires Mark To Market whereas BTFP marks value at Par? If so, more F’ing inflation coming as we pick up the tab for yet another hidden bailout.
Sounds like a $CBDC for banks?
It doesn't matter. The uniparty socialist US government is repeating all the mistakes of the socialist regimes of Latin America. The Fed is sending a thinly disguised warning that a crisis is inevitable, make sure that the lifeboats are ready to launch. Rick Santelli's chart is prescient.
This all seems like the very legitimate behavior of a benevolent institution, yes. 🤦♂️
Great information in this post! The concentration of power is obvious considering the absolute dismantle of DoddFrank Section 165 as the top 2 banks now hold 53% of all deposits...so much for the 10% total deposit rule! The top 5% hold over 83%. Its obvious we have a National bank and 5 conduits.
If this were to happen, what would be the likely consequences for the average middle-class American?
Sergeant Schultz as Central bankers made me laugh out loud. Thanks!
If banks are forced to hold more capital, will this have the effect of creating some healthy banks?
It certainly does have the feel of an imminent crisis they are trying to avoid/prevent. Alas, as the crises get bigger, it becomes that much harder. could be a bumpy ride
"Every depository institution is set up to borrow from the discount window by virtue of participation in the Federal Reserve System."
Are they really? If a bank needs to access the discount window in an emergency, but hasn't done so in the past, are they prepared to quickly do so, or would some "practice" be of value?
You quickly "hand-waved" away the Fed's reasoning on this issue, so I'm not sure if I'm ready to believe your argument.
So if they're going to douse the problem with liquidy liquidity, the stonk market will steadily go up for the next ten years?...Like the decade of 0% interest rates
Great article, and it is a perfect example of U.S. policymakers doing whatever it takes to keep the system afloat as discussed in The X Project’s latest article:
https://thexproject.substack.com/p/dont-miss-the-forest-for-the-trees-beb
They are pitching it as a firedrill. Tap the discount window once per yr so your bank knows how to, so that you all dont panic without the btfp.
Good idea! It makes sense that the mechanics of borrowing money would be foreign to a bank.
Its ridiculous. They are saying SVB didnt know how to. Thus the bailout and btfp program. And that if SVB knew how to, then it might not have blew up. This is the world we live in
Hahaha