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On a per capita basis, it's as if everyone in the US lent $350 to the banks. (115B/327M)
by npollock 7y ago
On a per capita basis, it's as if everyone in the US lent $350 to the banks. (115B/327M)
- hbosch 7y agoDo these "loans" ever get paid back?
- nostrademons 7y agoYes, the next day. Sometimes they get rolled over, but that's why you watch the trend in the repo market over time.
- qeternity 7y agoIf these loans didn’t get paid back, we’d have another crisis.
- the-dude 7y agohttps://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren... From 870 billion in 2008 to 4 trillion now.
- Ancalagon 7y agoWow thats a crazy way to look at it...
- tryitnow 7y agoAccording to this article, it's worse than that, we're lending money not to banks, but to hedge funds, PE firms, and REITs: https://wolfstreet.com/2019/11/06/whats-behind-the-feds-bailout-of-the-repo-market/ https://wolfstreet.com/2019/11/06/whats-behind-the-feds-bail... These firms than use the cheap money (interest rate < 3%) to make leveraged bets on risky assets (mortgage backed securities, CMOs, etc).
- jayalpha 7y agoso? What could possibly go wrong? :-)
- nostromo 7y ago... and received $351 back the next morning.