nr378

9 ms·

91.
by nr378 3y ago
This essay seems to rely explicitly on the idea that Government deficits are always monetised, and that the Central Bank is forced to do this and has no say in the matter, which causes inflation. That seems empirically incorrect - debt mone
92.
by nr378 4y ago
> If you want to transfer > X million ahead of time, you must give an N day notice. We have those kind of fixed-term and notice accounts, but many businesses and consumers prefer to use more flexible demand-deposit accounts. You could
93.
by nr378 4y ago
> the transfer should just be a decrement of a number in the first bank and an increment of it in the account on the second bank The transfer actually decrements two numbers at the first bank and increments two numbers at the second bank
94.
by nr378 4y ago
$56bn of deposits at point of sale to First Citizens. It had $119bn of deposits at the point the FDIC took over as receiver and then subsequently guaranteed all deposits [1]. [1] https://www.fdic.gov/news/press-releases
95.
by nr378 4y ago
In order to affect monetary policy, the Fed now pays 4.9% interest[1] on $3.03trn of reserve balances[2], which is now costing them approx $150bn/yr run rate. Just 12 months ago they paid 0.15%. This $150bn cost is a consequence of qua
96.
by nr378 4y ago
Post-QE, the Fed now has to pay interest on it's excess reserves[1] in order to achieve it's Federal Funds rate. This costs the Fed real money, and it no longer collects enough money on the interest paid on it's assets (given
97.
by nr378 4y ago
Eligible collateral under the Bank Term Funding program must be "direct obligations of, and obligations fully guaranteed as to principal and interest by, the United States", this covers assets such as U.S. Treasuries, U.S. agency
98.
by nr378 4y ago
> deposits can be lent out to make money. Your intuition is correct to some degree - if you imagine I go down to the bank and deposit $50 in cash, that deposit is both an asset and a liability to the bank (it expands both sides of the b
99.
by nr378 4y ago
Apologies, typo corrected
100.
by nr378 4y ago
The press release is somewhat difficult to parse, but it appears like First-Citizens Bank acquired: Liabilities: $56bn (all of SVB's remaining deposits) Assets: $56bn (SVB's illiquid loan book notionally worth $72bn at a $16.5bn d
101.
by nr378 4y ago
SVB held $21bn of 'available for sale' bonds and $91bn of 'held to maturity' bonds on its balance sheet, that were actually only worth $19bn an $76bn respectively on a mark-to-market basis, which means a total unrecognis
102.
by nr378 4y ago
This really just seems to boil down to a state-provided bank account rather than anything more meaningful, which is not necessarily a bad thing but is unnecessary given there is already a competitive market for bank accounts (all of which a
103.
by nr378 4y ago
> Update: my guess would be that private money (think Venmo) and crypto have a chance to win over commercial bank money (think bank accounts and transfers) for the general public, and the government thinks it’s a potential threat (probab