Crushing the States, Saving the Banks: The Fed’s Generous New Rules

Posted by freedomforall 10 months ago to Business
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"Banks can get virtually free loans from the discount window that can be rolled over from day to day as necessary. The press release said that the Fed had also eliminated the reserve requirement – the requirement that banks retain reserves equal to 10% of their deposits – and that it is “encouraging banks to use their capital and liquidity buffers as they lend to households and businesses who are affected by the coronavirus.” It seems that banks no longer need to worry about having deposits sufficient to back their loans. They can just borrow the needed liquidity at 0.25%, “renewable on a daily basis.” They don’t need to worry about “liquidity mismatches,” where they have borrowed short to lend long and the depositors have suddenly come for their money, leaving them without the funds to cover their loans. The Fed now has their backs, providing “primary credit” at its discount window to all banks in good standing on very easy terms. The Fed’s website states:

Generally, there are no restrictions on borrowers’ use of primary credit….Notably, eligible depository institutions may obtain primary credit without exhausting or even seeking funds from alternative sources. Minimal administration of and restrictions on the use of primary credit makes it a reliable funding source."

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  • Posted by mccannon01 10 months ago
    ...and just like that (snaps fingers) even more trillions of dollars appear from nowhere. It's all magic, ya know.

    The pension plans for a good amount of public "servants" are lavish compared to the private sector and they don't have to work, er serve, as long to get it. From what I can see, the biggest problems are in Democrat states and municipalities where public unions have donated substantial amounts to Democrat coffers - nothing to see here, move along.
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    • Posted by 10 months ago
      Often they are municipalities that are racially acceptable to Democrats for enslavement.
      NY 56% non-white
      LA 51% non-white
      Chicago 56% non-white
      Phillie 59% non-white
      Atlanta 62% non-white
      Detroit 90% non-white
      D.C. 62% non-white
      Boston 56% non-white
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      • Posted by mccannon01 10 months ago
        I didn't think of it that way. Interesting, though. From my own experience over the past few decades it seems an awful lot of whites are becoming willing participants in the recipient/slave class as well, especially the young. Fewer and fewer young people I know (young to me is under 50, LOL) want to hold on to what's left of free America or even understand what it is - or should I say what it was. Really sad.
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