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Yeah, they just pull $25B of out that hat, nevermind talks about debt ceiling and defaulting on US debt.
by hypothesis 4y ago
Yeah, they just pull $25B of out that hat, nevermind talks about debt ceiling and defaulting on US debt.
- digitaltrees 4y ago$25b is a rounding error on a rounding error against the US economy. Further the $25b it going to be used to buy assets at par that are currently impaired but expected to go back to full value when interest rates fall. So for an investment of fractions of a penny on the dollar the Fed can preserve a large number of high growth start ups that will accrete trillions of dollars of value in the future. Seems like a good call.
- hypothesis 4y agoIt makes sense in theory, but how is this not a license for further similar schemes? Surely $25B is a rounding error for all major players here, given a noisy constituency, but it looks like this sets up lack of accountability... Also, some articles are claiming that Fed is now covering all uninsured deposits, just like overnight. [0] https://twitter.com/colbyLsmith/status/1635061613920395264 https://twitter.com/colbyLsmith/status/1635061613920395264