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elee

38,454 Posts.

103

02/10/22

12:21

Post #: 63987015
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Originally posted by kingpins: ↑

Fed to call emergency meeting on Monday to lower rates ?

I posted some time ago that the interest rates could/should not be raised for technical reasons IE they did not and would not fix the actual problem by doing so, well it appears that they have also discovered this

If you look at how the Repo market which has risen to $3 Trillion per day (two years ago it was about 30 Billion) and loans which by law are supposed to be repaid at the end of the day are now stretched out to 30 / 90 days

Technically if the banks do not repay the money (IE settle their debts) they are bankrupt/insolvent and no longer in business so the Fed makes money available to tide them over

Obviously the big banks can no longer comply so a talk fest
Will one of more big US banks fail ?

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tht wouldnt be a problem in 2022
they hv the full array of Bail-In Laws.
the depositer$ will be of a great help in $olvency/liquidity issues

don't need a Krystal Ball on that one

Last edited by elee: 02/10/22
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