So the Fed conjured $1.5 trillion out of thin air in the heat of the moment without second thought, gave it to bankers, the stock market rose 4% for 30 minutes, then crashed back to where it was.
Meanwhile, the powers that be running America can't provide affordable healthcare, education and housing
Cool.
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based as fuck, which CIA nigger can save us from the impending doom?
where do I donate my balls?
The Fed bought 1.5T of assets using fake money that they said was fake, and will ride high when this is over
>So the Fed conjured $1.5 trillion out of thin air in the heat of the moment without second thought, gave it to bankers, the stock market rose 4% for 30 minutes, then crashed back to where it was.
Thank you president Trump. Very cool.
You fucking retard.
These conjured assets are low interest, overnight loans to keep the banks running because JP Morgan, Citibank, Wells Fargo, and Bank of America decided to be dicks and abuse their power during this crisis.
Those 4 banks were charging little banks and credit unions 8% interest for a fucking *overnight* loan.
The Fed stepped in and said,” fuck you, Jews.” and took over the overnight (Repo) market.
Socialism for the rich. Rugged individualistic capitalism for everyone else.
>BAG
This. Feds are /ourguys/
Do you not understand fractional reserve banking? It's just numbers on a screen, literally monopoly money.
They don't give a fuck about us.
Stockmarket over.
Coronavirus = Very Yes
And by the way, the little banks and credit unions are giving the Fed 20% collateral in Treasury bonds, so this is technically helping pay off the national debt while keeping little banks and credit unions from failing.
God, I fucking hate Yas Forums sometimes. The Fed does something good for once and you guys still jump all over them.
#MIGA!!!
TRUMP 2020!
BASED!
AND MIGHT I SAY AS WELL THAT IS BASED AS FUCK AND THEY ARE INDEED OUR FUCKING GUYS
WHO HERE DOESNT AGREE FOR FUCKS SAKE
MAGA with the Feds is very BASED!
>B A S E D A S F U C K
>U
>C
>K
>F
>U
>C
>K
Thank user, do you work in finance by any chance?
Those are made up facts pulled out of his ass
i guess we could just let it crash. imagine going to the bank and the teller says sorry your money is gone. this could probably still happen. get your money out now
You’re talking bullshit. Small banks and credit unions don’t borrow from the super large banks. They’re well capitalized and have good liquid asset levels. The repo rate spiked to 8% briefly because Fed kikes make the large banks maintain a liquidity coverage ratio (LCR) at the same time as they bought a shitload of Treasury bonds.
The Fed is a kike profit center that sucks the lifeblood out of the economy and every Fed governor needs to be hung from a lamp post in minecraft
I think he’s right, what’s wrong with this analysis?
It's a loan with full value collateral that can be instantly clawed back if the loan isn't repaid
“FED BAD” is the libertarian version of “ORANGE MAN BAD”.
Just acknowledge that the Fed did something good for once and move on.
Here’s how the $1.5 trillion gets used:
Little Town Credit Union has $100,000 of reserves.
>Mr. Cohen wants to withdraw $250,000 because he’s shitting his pants about his sheckles
Little Town Credit Union calls the Fed and asks for $250,000. They give the Fed $300,000 of Treasury Bonds as collateral.
>Little Town gives Mr. Cohen his sheckles and stays open
The next day, Little Town can either let the Fed keep the $300,000 of Treasury Bonds, or pay them back $252,000.
For reference, Wells Fargo, Bank of America, JP Morgan, and Citibank were charging $25,000 instead of $2,000 for the same loan (with the same exact risk and same collateral). They were using their size to try to make other banks and credit unions fail (for their own gain).
The Fed did a good thing today by preventing big banks Jewing other banks and will make a small amount of money off of the $1.5 trillion, reducing the national debt. Just give them credit for doing a good thing and move on... jeez, Yas Forums
Glow more, Fednigger
the sad fact is, with the current state of Yas Forums, these newfags wont even see the necessity of having central banking. honestly, where would we be without them? newfags will ALWAYS bitching and moan about the banks, fucking retards.. they literally need them and should be thankful to have them!
>anti central bank shill
meh, always the same. go play with your "tangible wealth" meanwhile the better more sophisticated system of creating it will remain retard
Those were 1.5 Trillion which were literally given into the hands of already rich people, namely hedge fond managers, banks, and the Roman/British families owning central banks, governments and media.
We will see the first banks going bankrupt in the next days, no one single doubt
>Boomers will now have to double down on workforce.
>No retirement ever.
Boomers win again.
So much bad info here. They injected 500 billion. And will do 1 Trillion tomorrow.
It is not out of then air it has to do with bonds, it is complicated but if the banks don't pay it back, then the bonds go back to the government.
LMAO. This is the fed providing liquidty to banks who were being reckless and wayyyyy over leveraged. They were reckless because they know the fed would bail them out with repos. The feds are giga kikes and you're a retard.
>It is not out of then air it has to do with bonds, it is complicated but if the banks don't pay it back, then the bonds go back to the government.
You have no idea what you're talking about. These repos contracts are going to renewed indefinitely because the dow went to shit even with the 500 billion.
They're not "giving" anything, the bonds are what the 1.5 trillion was partially "Spent" on. Fuck your monopoly money
Cope harder, brainlet.
Here’s what would have happened before today:
>Little Town Credit Union has $100,000 of reserves.
Mr. Cohen wants to withdraw $250,000 because he’s shitting his pants about his sheckles
Little Town Credit Union is forced to choose between:
>being Jewed by big banks, potentially jeopardizing their ability to cover everyone’s money (and eventually resulting in them going bankrupt and collecting $250,000 of insurance WHICH THE FED CONJURES UP for each customer)
>just go bankrupt and collect up to $250,000 of insurance for each customer WHICH THE FED STILL CONJURES UP
This is a much better alternative. Just fucking admit it, Yas Forums, the Fed used their magic powers for something good today.
Alright bros. Whos /ourguys/ in pandemic? FBI FEDchads or CDC glows?
If they renew them indefinitely it’s a bailout, the markets would freak out even more.
>renewed indefinitely
wut
They "loaned" 1 500 000 000 000 which would have to be paid with back with interest by "the public". Of course they don't expect to receive this directly but rather they allow banks to directly acquire the amount to collect at a lower interest rate (which actually drops to below zero sometime from now). The end result is nothing regarding actual cash exchanges but it prevents liquidity with the unwanted collateral of increasing inflation.
The thing about this one dip is that bonds/treasury are also going down which is quite unusual. People are panicking to the point of "the whole system is collapsing" and not merely to the point of "risky stocks are done for, I'm gonna but my bets on safe assets". Even the safe assets are no longer being considered safe and this is cascading pretty heavily.
Of course this is the fault of previous money printing exactly like now and of artificial growth sustained by stock buybacks and mergers&acquisitions rather than actual productivity and social investing. The typical financial techniques adopted after 2008 are all responsible for an erosion of trust which is sadly intangible to the market: when we finally run out of trust, money will be irrelevant and deals will mean nothing in the face of mass insolvency
Trump doesn’t run the Fed.
They've been renewing repos indefinitely for a long time now user. This is just increasing the amount.
>So the Fed conjured $1.5 trillion out of thin air
Not how it works.
Meaning they keep the amount of repo contracts at a certain level. Repos are bought back with new repos.
it is
You fucking retard. The banks are over-leveraged because of JPM, BoA, Wells Fargo, and Citi raping them while the Fed did quantitative tightening, giving those same big banks an advantage. They needed to fix their fuck-up, or this was going to explode into a huge financial crisis with banks failing.
Functionally yes, that's how it works.
The Fed is not our friend dipshit... Let these fuckers fail.
The fed has to allow that.
All that high repo rates would do is force banks to be more liquidity.
You mad, TD shill? No more usury of small town America for you guys.
And they do. Its been going on since the last crisis 2008.
NOOOOOOOOOOO NOT MY STOCKERINOS NOT MY STOCCY BOIS NOOOOOOO
Yes because this is what is going to make a thriving country great. Fuck off leftoid
What? The fed providing liquidity to banks ensures that there will be MORE usury.
This was my read of it plus whining about capital requirements. This will not fix the situation unfortunately as they have been in repo operations for 8+ months.
Let me ask you, in what scenario do you see a cash run on banks as a possibility?
TIL, nobody on Yas Forums knows finance AT ALL. What a sad pathetic thread. God damn
Except for the fact that we have retarded laws that make American banks and financial institutions use a crippling amount of would-be liquid assets as untouchable reserves. The higher your amount of potential liquid assets, the more reserves you need to hold.
This probably seemed like a good idea to simple-minded people and politicians (who don’t understand banking), but it’s been crippling for banks and credit unions... because it literally just turns liquid funds into illiquid funds.
>This was my read of it
Lmao its so far off base I don't know what to tell you.
What if, check this out - what if instead we DIDN'T bail ANY of the banks out and let the invisible hand of the market take care of it?
>REPO
>ONLY ANNOUNCED IT
It's all they can do, the shit winds have turned into a shitnado
14500 will be the floor
Screencap this
>10% is crippling
Banks being over-leveraged is the problem, not reserve requirements. The fact that the system needs banks to hold little to no assets to function problem means you have a broken system. Propping up further is just going to increase the pain when it breaks down.
>ed bought 1.5T of assets
The bought nothing yet, and REPO is not the same as buying it, it is much closer to short term loans.
>closer to short term loans.
Stop repeating this meme shill
Welcome to the wonderful world of privately owned central banks run by Kikes for Kikes. Print a trillion dollars so their kike buddies on Wall Street get a nice pay day while everyone else suffers. Maybe now that we have internet people will be able to remember why we have to toss them all into ovens and not take pity on them again.
Buy stocks now now now!!! they're on sale!! AAAHHHH BUY THEM
I’m going to answer that with another question:
>stocks are down
>bonds haven’t moved much
>mortgage rates haven’t budged yet
>crypto is crashing
>gold isn’t doing well
Where do you think the money is going right now, user?
Despite what the Fed announced today, I still wouldn’t sleep well with money in a credit union, small bank, HSBC, or Deutsche Bank right now.
I know what repos are but these "loans" are rolled over indefinitely. It amounts to a liquidity injection in the long term. If they try to yank that 500b the markets collapse.
This is why I was for Bernie. The money means jack shit. They manipulate it in their favor all the time, just not for us so fuck it accelerate. We either get free healthcare, college or everything burns down, either way I win.
I need to learn how I can better profit from USD inflation.