The Federal Reserve Is Bailing Out The Banks Again

[g5000]

As I have explained in other topics, investors are sitting on countless trillions of underwater sovereign and corporate debt world-wide. They irresponsibly took on astronomical amounts of interest rate risk.

Interest rate risk is what did Silicon Valley Bank in.

Because of Silicon Valley Bank's collapse, the Federal Reserve, which was a major contributor to inflation and is now the principle cause of interest rate risk, has quietly opened a new program to bailout banks which are carrying too much interest rate risk.

Federal Reserve Board announces it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors

To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository i

www.federalreserve.gov

To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy.

The Federal Reserve is prepared to address any liquidity pressures that may arise.

The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. 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.
"These assets will be valued at par."

Of course. Of course.


Things aren't as sound as they would have you believe.

 

[1srelluc]

"the Federal Reserve, which was a major contributor to inflation...."

Care to flesh that one out a bit?

 

[g5000]

"the Federal Reserve, which was a major contributor to inflation...."

View attachment 766301

Care to flesh that one out a bit?

ZIRP.

QE1, QE2, QE3, QE4ever.

Take a look at their balance sheet.

 

[1srelluc]

ZIRP.

QE1, QE2, QE3, QE4ever.

Take a look at their balance sheet.

While I agree that they were asleep at the switch with the whole QE thing congress's uncontrolled spending before/during/after covid is what really got us into this mess as far as inflation goes.....As a example, that new bridge in KY could have waited.

 

[Dekster]

Welcome to the Recession. Enjoy your stay.

Has little to do with Biden though. Jerome Powell is Trump's idiot appointment

 

[g5000]

While I agree that they were asleep at the switch with the whole QE thing congress's uncontrolled spending before/during/after covid is what really got us into this mess as far as inflation goes.....As a example, that new bridge in KY could have waited.

See my topic I linked to in an earlier post. I go into a lot of detail about all that.

I said the Fed was a contributor, not the sole contributor, to inflation.

By making borrowing cheaper, the Fed encouraged reckless borrowing. Not just by the federal government, but by EVERYONE. Corporations, home buyers, etc.

Not just here. World-wide.

And now the institutions which bought that debt (insurance companies, college endowments, banks, etc) are all sitting on astronomical, mind-boggling interest rate risk. Which is why the Fed is feeling the need to cover their risk. Well, the banks' risk. Everyone else can go fuck themselves.

Bailout.

 

[Dekster]

See my topic I linked to in an earlier post. I go into a lot of detail about all that.

I said the Fed was a contributor, not the sole contributor, to inflation.

By making borrowing cheaper, the Fed encouraged reckless borrowing. Not just by the federal government, but by EVERYONE. Corporations, home buyers, etc.

Not just here. World-wide.

And now the institutions which bought that debt (insurance companies, college endowments, banks, etc) are all sitting on astronomical, mind-boggling interest rate risk. Which is why the Fed is feeling the need to cover their risk. Well, the banks' risk. Everyone else can go fuck themselves.

Bailout.

The federal government owns about half of US mortgages. They aren't covering the banks. They are covering themselves.

 

[g5000]

The federal government owns about half of US mortgages. They aren't covering the banks. They are covering themselves.

No, they are not covering themselves. They can't lose money. They print and burn money all the time.

The banks can lose money.

But as I pointed out earlier, an examination of the Fed's balance sheet will show how they contributed to inflation. Like you just said, they own a large chunk of MBS, which is insane.

 

[gipper]

Joe Biden says he’ll make sure the banks are well cared for. Just as he cares for Ukraine.

When will he care for the American people?

 

[BasicHumanUnit]

Joe Biden says he’ll make sure the banks are well cared for. Just as he cares for Ukraine.

When will he care for the American people?

Joe Biden himself is...and is controlled by foreign agents. This is who we allowed to determine our fates.
The only concern they will ever have for the American people is how much they can TAKE from them.
Leaving America a wasteland and all Americans destitute is of no concern to them, In fact they find it amusing.

Keep in mind China is one of if not the most significant foreign agents I speak of.
America has become the premier Land of Fools.

 

[Dont Taz Me Bro]

"the Federal Reserve, which was a major contributor to inflation...."

Care to flesh that one out a bit?

With rare exceptions like the Civil War, economic booms and busts in this country were rare until the creation of the Federal Reserve Bank.

 

[gipper]

With rare exceptions like the Civil War, economic booms and busts in this country were rare until the creation of the Federal Reserve Bank.

And our currency held it’s value over many decades.

 

[g5000]

Joe Biden says he’ll make sure the banks are well cared for. Just as he cares for Ukraine.

When will he care for the American people?

Do you have money in a bank?

 

[g5000]

With rare exceptions like the Civil War, economic booms and busts in this country were rare until the creation of the Federal Reserve Bank.

That is completely false. Prior to the Federal Reserve, recessions were far more frequent, deeper, and longer lasting.

See for yourself: List of recessions in the United States - Wikipedia

 

[g5000]

And our currency held it’s value over many decades.

Tying your currency to how much of a metal you have dug out of the ground is stupid.

Those countries which went off the gold standard recovered from the Great Depression the soonest. Those which were not on the gold standard to begin with did not suffer during the Great Depression.

 

[gipper]

Tying your currency to how much of a metal you have dug out of the ground is stupid.

Those countries which went off the gold standard recovered from the Great Depression the soonest. Those which were not on the gold standard to begin with did not suffer during the Great Depression.

Agreed, but the point I made is indisputable.

 

[Fort Fun Indiana]

Joe Biden himself is...and is controlled by foreign agents. This is who we allowed to determine our fates.
The only concern they will ever have for the American people is how much they can TAKE from them.
Leaving America a wasteland and all Americans destitute is of no concern to them, In fact they find it amusing.

Keep in mind China is one of if not the most significant foreign agents I speak of.
America has become the premier Land of FoFools.

What a bunch of paranoid, AM radio nonsense.

 

[Fort Fun Indiana]

As I have explained in other topics, investors are sitting on countless trillions of underwater sovereign and corporate debt world-wide. They irresponsibly took on astronomical amounts of interest rate risk.

Interest rate risk is what did Silicon Valley Bank in.

Because of Silicon Valley Bank's collapse, the Federal Reserve, which was a major contributor to inflation and is now the principle cause of interest rate risk, has quietly opened a new program to bailout banks which are carrying too much interest rate risk.

Federal Reserve Board announces it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors

To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository i

www.federalreserve.gov

To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy.

The Federal Reserve is prepared to address any liquidity pressures that may arise.

The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. 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.
"These assets will be valued at par."

Of course. Of course.


Things aren't as sound as they would have you believe.

This is why we have central banking. We can talk about what the federal reserve "causes", but it's not an exact science. The best practices are not perfect. And I think we agree that the alternative would be much worse.

 

[g5000]

This is why we have central banking. We can talk about what the federal reserve "causes", but it's not an exact science. The best practices are not perfect. And I think we agree that the alternative would be much worse.

Yes, the alternative would be worse, but that does not let the Fed off the hook for their colossal fuckup.

 

[C_Clayton_Jones]

As I have explained in other topics, investors are sitting on countless trillions of underwater sovereign and corporate debt world-wide. They irresponsibly took on astronomical amounts of interest rate risk.

Interest rate risk is what did Silicon Valley Bank in.

Because of Silicon Valley Bank's collapse, the Federal Reserve, which was a major contributor to inflation and is now the principle cause of interest rate risk, has quietly opened a new program to bailout banks which are carrying too much interest rate risk.

Federal Reserve Board announces it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors

To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository i

www.federalreserve.gov

To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy.

The Federal Reserve is prepared to address any liquidity pressures that may arise.

The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. 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.
"These assets will be valued at par."

Of course. Of course.


Things aren't as sound as they would have you believe.

The blame rests for the most part with a Republican controlled Congress and Trump who rolled back banking regulations.