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they don't rely on investing cash deposits on long-term illiquid instruments Where do the banks get the money for the mortgages from those from? Is a central
by mikeryan 4y ago
they don't rely on investing cash deposits on long-term illiquid instruments
Where do the banks get the money for the mortgages from those from? Is a central bank giving them loans for to cover the mortgage outlay? Because if they're financing them with customer deposits (which is the way every bank I know in the US works) those mortgages are long-term illiquid instruments.