What would the difference be in this scenario with full versus fractional reserve?
Why the Federal Reserve is pouring money into the financial system
51–60 of 110 posts
Re: Why the Federal Reserve is pouring money into the financial system
#52You can use Google to bypass the paywall:
https://www.google.com/search?gl=us&hl=en&pws=0&source=hp&ei...
Re: Why the Federal Reserve is pouring money into the financial system
#53https://outline.com/BqFFzM
This link is broken for me. I tried it a few different Firefox containers and a private window. No dice!
Re: Why the Federal Reserve is pouring money into the financial system
#54Non paywall?
Search the title of the article on Google. They can't afford to ban visitors from Google as they would lose half of their traffic.
Re: Why the Federal Reserve is pouring money into the financial system
#55The money absolutely impacts the economy and the individual. If the fed were not providing this printed money to the banks, the banks would need to do some combination of the following to increase liquidity: 1) Increase interest rates to attract new deposits 2) Sell assets — such as foreclosed homes now in the banks possession With house prices at all time highs and interest rates at all time lows, both 1&2 sound gre…
No matter how many times it is explained, at the end of the day people who are not me and who have no real valid claim to free money are being given free money and allowed to profit off of it.
Re: Why the Federal Reserve is pouring money into the financial system
#56They can always pump more money to the market in different ways, but what is clear that is happening there is a shift on the dollar not being the world currency / international trade currency. FED will have always more trouble to handle that. What will happen is hard to say, maybe some crazy inflation, or liquidity crisis... or something I don't care about. What I care about is that economy and money will be broken f…
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Re: Why the Federal Reserve is pouring money into the financial system
#57The money absolutely impacts the economy and the individual. If the fed were not providing this printed money to the banks, the banks would need to do some combination of the following to increase liquidity: 1) Increase interest rates to attract new deposits 2) Sell assets — such as foreclosed homes now in the banks possession With house prices at all time highs and interest rates at all time lows, both 1&2 sound gre…
No matter how many times it is explained, at the end of the day people who are not me and who have no real valid claim to free money are being given free money and allowed to profit off of it.
^ this is they key to being wealthy, counterfeiting :)
Re: Why the Federal Reserve is pouring money into the financial system
#58Earlier quoted context omitted.
This is no different than the manipulation that happened with LIBOR. Back then the media was quick to point out that the manipulated interest rate impacted pension funds, mortgages, and everything in between. The fed is doing the same thing by stepping in and manipulating the overnight rate. Without the fed doing this, banks would have to plan ahead and make sure they have sufficient liquidity. This means maybe offer…
Part of the problem is the fed has tried to raise short term rates while the rest of the world has had a zero interest rate policy. Meanwhile, the US interest rate curve is inverted. So banks, who typically lend long and borrow short get squeezed. So even if the fed is targeting 2% rates, but the 10 yr is at 1.5%, a bank really shouldn’t be borrowing from you at 2% to lend it out to someone else at 1.5% on a ten year…
Maybe it's because the rest of the world can though. If you look at the debt to GDP ratio of Germany, Russia, China, it is much lower than the United States. Recently it was reported by AB Bernstein that the Debt-To-GDP ratio in the United States -- the real Debt-To-GDP Ratio -- is 1,832%!!
https://interactiveswingtrading.com/2019/09/09/ab-bernstein-...
Re: Why the Federal Reserve is pouring money into the financial system
#59Earlier quoted context omitted.
No matter how many times it is explained, at the end of the day people who are not me and who have no real valid claim to free money are being given free money and allowed to profit off of it.
^ this is they key to being wealthy, counterfeiting :)
That and when running a business you get to keep profits but someone else pays for your losses.