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I cannot access the article. If the Federal Reserve thinks the banking system is imperiled, it will cut interest rates and loosen credit enough to reduce the am
by Bostonian 3y ago
I cannot access the article. If the Federal Reserve thinks the banking system is imperiled, it will cut interest rates and loosen credit enough to reduce the amount of bad property debt to tolerable levels. This would be inflationary, though.
- sampa 3y agoyes, "money printer go brr" moment is coming this is the only thing governments all over the world are going to do when everything falls apart
- bequanna 3y agoHard to see things going that way. We've just started to rein in inflation. I don't think anyone (Fed, politicians, or the public) has the stomach for more QE.
- sampa 3y agowhen the banks fall and the system is collapsing, this is their only answer see 2008, 2020
- bequanna 3y agoThis is a very bold prediction. Given how aggressively we expanded the money supply just a few years ago, mass bank failures seem quite unlikely as asset price increases generated quite a bit of equity leaving plenty of buffer room for loan defaults. Still plenty of liquidity out there. Commercial real estate is not a systemic threat.