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(a) What alternative would they have, besides closing the banks? (b) Still only a small fraction of insured deposits. (c) Contingent on its ability to govern. H

• JumpCrisscross 9y ago
  > What alternative would they have, besides closing the banks? Receivership [0]. Note that if your bank closes, the FDIC still sends you your money. > How long would that last in such a scenario? The FDIC has about $7 trillion in insured deposits [1]. In the crisis, between TARP [2] and TALF [3], the federal government printed $1.5 trillion. (About $1.8 trillion in 2017 dollars [4].) Meanwhile, the Fed bought $4.5 trillion in assets through its quantitative easing programmes [5]. Adjusting for inflation, we probably saw close to $7 trillion in fiscal and monetary stimulus. [0] https://www.fdic.gov/about/strategic/strategic/receivership.html https://www.fdic.gov/about/strategic/strategic/receivership.... [1] https://www.fdic.gov/bank/statistical/stats/2017jun/fdic.pdf https://www.fdic.gov/bank/statistical/stats/2017jun/fdic.pdf [2] https://en.m.wikipedia.org/wiki/Troubled_Asset_Relief_Program https://en.m.wikipedia.org/wiki/Troubled_Asset_Relief_Progra... [3] https://en.m.wikipedia.org/wiki/Term_Asset-Backed_Securities_Loan_Facility https://en.m.wikipedia.org/wiki/Term_Asset-Backed_Securities... [4] https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=1.50&year1=200812&year2=201709 https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=1.50&year1=200... [5] https://en.m.wikipedia.org/wiki/Quantitative_easing https://en.m.wikipedia.org/wiki/Quantitative_easing