3 ms·
They're all insolvent because they were required to buy USG bonds, whose value has gone down as the Fed increased rates to fight inflation. The only way to fix
by sbierwagen 3y ago
They're all insolvent because they were required to buy USG bonds, whose value has gone down as the Fed increased rates to fight inflation.
The only way to fix the insolvency crisis would be to invent a time machine to go back and stop QE/ARP/IRA.
If you print a trillion dollars, inflation goes up. To stop it, you have to take a trillion dollars out of the economy. When you do that, it's painful and unpleasant and businesses go bankrupt. This should not be a surprise.
- rcme 3y agoThey didn't need to buy long-term bonds and MBS. They chose to because they were looking for a return on their capital.