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The fed has backstopped the FDIC. Instead of letting taxpayers foot the bill, of which are majority of payers are the very wealthy, they will foot the bill via
by beiller 4y ago
The fed has backstopped the FDIC. Instead of letting taxpayers foot the bill, of which are majority of payers are the very wealthy, they will foot the bill via inflation by rolling back some of the QE. Sure it's just a loan but what if the loan has no one to repay. Who will repay this loan in SVB's situation (the shortfall of asset sales to account balances) maybe I am misunderstanding. The money to cover the shortfall of the FDIC was conjured. It will find a way to your grocery bill. If all the banks are paying a fee to foot the bill, the payers of that fee will be you the customer.
- HDThoreaun 4y ago> Who will repay this loan in SVB's situation? The FDIC has announced that any shortfalls wlil be paid by the collective member banks. As long as the banks can't pass these costs onto customers it will have no effect on taxpayers. There's good reason to believe that one time supply shocks don't effect prices, so I'd say taxpayers did not foot the bill here. Bank equity holders did.
- chii 4y ago> As long as the banks can't pass these costs onto customers fat chance?