3 ms·

Could someone explain what exactly this means in simple terms?

• deleted 4y ago
  [deleted]
• lazide 4y ago
  They’re making it easier to swap debt for cash (temporarily), so no one panics because they can’t get a loan fast enough in USD. The ability to do so is key for a great many financial operations.
  • alooPotato 4y ago
    Why is it a temporary thing? Seems like all upside?
    • yeahsure22 4y ago
      Well the debt is worthless so one but the FED can afford to buy it.
• Analemma_ 4y ago
  Banks have a bunch of assets (mortgages, long-term government debt) that still has its full value, but only 10 years later, people want their money out now, the Fed is issuing bridge loans to cover the gap and avoid bank runs.