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So there's not enough cash in circulation for banks to sell some of their assets marked down? In some sort of bad event won't the be unable to pay back the one

by hnaccy 7y ago

So there's not enough cash in circulation for banks to sell some of their assets marked down? In some sort of bad event won't the be unable to pay back the one day loan and so the fed is just helping them juke the required liquidity ratio?

bransonf 7y ago
It's not a matter of cash in circulation. It's just against the incentive of banks to hold any more cash than necessary.