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That's exactly my point, no? This is not about a bank mis-managing itself. Removing liquidity as in the supply of money is going to kill some people. The people
by csomar 4y ago
That's exactly my point, no? This is not about a bank mis-managing itself. Removing liquidity as in the supply of money is going to kill some people. The people who fall are not also necessarily the ones who are mis-managed. Someone out there is insolvent but until an il-liquidity event happens to them, they carry on operations for now.
The Fed (meaning, the authority in broad) will continue to remove liquidity and as a consequence kill businesses. This is not an unintended result. This is, in fact, the wanted result and what they are aiming for.