4 ms·
There is no dollar shortage, there is a shortage of suckers wanting to hold their dollars in regular bank accounts due to low interest rates. As long as the th
by raducu 7y ago
There is no dollar shortage, there is a shortage of suckers wanting to hold their dollars in regular bank accounts due to low interest rates.
As long as the the FED is willing to provide liquidity no questions asked, why would you hold dollars?
Just buy high yield bonds and when you want liquidity, you call the FED and loan your junk bonds for real dollars and you pocket the interest rate difference.
- Ambele 7y agoI'd really rather use my 2% savings account than the 1.61% from short term treasuries, 1.65% from intermediate term treasuries, or 2.1% from long term treasuries.* Or maybe you're making snarky comment on how large banks were bailed out in 2008 by the Fed by which the Fed traded a portion of it's "good" treasury debt for bad bank debt (CDOs). If that's the case than I agree because I dislike how the Fed bails out the banksters more than the common man. *Source for annual interest rates on common bonds: https://investor.vanguard.com/etf/list#/etf/asset-class/month-end-returns https://investor.vanguard.com/etf/list#/etf/asset-class/mont...