4 ms·
What a mess. The Fed has effectively made the United States into a socialist banana republic. As oligarchs will only trust the government, rather than private e
by mise_en_place 4y ago
What a mess. The Fed has effectively made the United States into a socialist banana republic. As oligarchs will only trust the government, rather than private enterprises, to be their counterparty when banking.
- andirk 4y agoPrivate enterprises are plenty responsible for this situation and similar past situations. Ironically (is it ironic I don't know), SVB got in trouble _because_ of the regulations. Time will tell if that dang govment got ahead of the situation early enough.
- mise_en_place 4y agoYes they share in the blame as they got greedy, but the Fed enabled it. Why else did First Republic Bank have a loan-to-deposit ratio of 113%? They were emboldened by the Fed thru the use of RRPs and zero reserve requirements.