Fed boosts plan to inject billions into the US economy

Banks are too dependent on overnight borrowing. They get over-extended, then depend on their ability to borrow for a short term so that they can show the required amount of reserves on their books.

It's not the lack of collateral. They have that. It's that too many want to borrow all at once. AND that this happens when available cash, to borrow, has been reduced.

 

Feel free to start a new thread

 

But take out the Trillion plus in gov spending and the several hundred Trillion injected by the Fed since September and calculate GDP

 

Iran thanks Obama as well for the pallets of cash and Putin thanks him for the parts of Ukraine he always wanted.

 

The repo rate went to 9% in September and the FED **** its pants.

 

Identical policies, identical thread

 

Why is trump imitating failed obama then?
Since it is “identical policies”

 

I'm no financial genius, but here's what I think is the solution:

The problem:

1. Some banks are riding the edge. They are functional, but need to borrow overnight in order to clean up their books during specific periods of time.

Answer: Those banks should be subjected to greater scrutiny, regulations, and penalties.

2. That specific time is the same for all banks.

Answer: The reportings should be spread out so that momentary spikes in demand for cash are averaged out over the quarter-year.

3. The reserve requirements essentially cause money to disappear. If a bank is required to hold a certain amount of cash, it effectively doesn't exist.

Answer: Allow banks to use the reserves, but penalize them and require them to prove a viable plan to eliminate their reliance on the reserves.

 

Did I not say I disagreed?

 

Don’t care what you “disagree” with — you said I agreed with them (which is a lie) so your comprehension is largely irrelevant.

Why would he be mimicking these policies?

 

Hundreds of billions in days means the big Wall St banks are riding the edge.

The office of the Comptroller of the currency shows that the 5 largest US banks are sitting on about $200T in derivatives positions against a cumulative $10T is real assets

 

Youd agree with them if it were O-mman and tell us how great the economy is.

Why does he do it?
Same reason Obaby did it.
The FED shareholders want it.

 

yes, Obama inherited a bad economy, Trump is the one lying and telling us how great his economy is... sounds like a Bush repeat right before the recession

Bush like Trump both telling the public how great their economy is before the crash

 

Oh jeez. Don't get me started on derivatives.

Those are absurdly under-collateralized.

I guess that they are a useful instrument, but they should not be allowed to be represented as collateral upon collateral upon collateral...

https://wallstreetonparade.com/2019...bankers-and-deutsche-bank-timeline-of-events/

 

Trump was the one that gave the corps a mega tax cut, should have gave the middle class a bigger tax cut

the problem is, the rich have most of the money, the regular citizens need to have money to spend, so the rich create jobs to get that money

even when the working class buy things now, the corps ship the jobs over seas

 

No the feds stepped in already, doesn't anyone read anything?

https://www.google.com/amp/s/www.cn...balance-sheet-again-but-dont-call-it-qe4.html



The Fed will be growing its balance sheet again, but don't call it 'QE4'
PUBLISHED WED, SEP 25 2019 2:49 PM EDT
UPDATED WED, SEP 25 2019 4:25 PM EDT

Jeff Cox
@JEFFCOXCNBCCOM@JEFF.COX.7528
SHARE
KEY POINTS

• The Federal Reserve is expected to resume its balance sheet expansion in response to demand for bank reserves.
• The central bank is reacting to a crunch last week in the overnight repo markets that sent short-term borrowing rates for bank's surging.
• In doing so, the Fed will be embarking on a different kind of program from the asset purchases used to pull the economy out of the financial crisis.

 

The Fed. will have to do more because the end-of-year needs supercede the quarterly estimates.

Quarterly tax reports represent estimates. Annual tax reporting must represent fact. There is some leeway granted in the quarterlies that isn't granted in the annual filings.

Would we guess that people, or institutions, would over-estimate their tax liabilities?

I think that we can agree that they will keep as much money as they can for as long as they can.

 

The banks the FED is saving today should have been liquidated in 2008

 

You have no idea what I would agree with.
Desperation looks pathetic, friend.

 

Printing paper money? Nothing bad ever happens from that. Thank the gods for the Fed. We all get more money!

We should all be able to print paper money. We could all help out!

 

The BANKS are BOOMING LIKE NEVER BEFORE RIGHT NOW under Dirty Donald.

 

Opinions or a link?

 

Wouldn't it be great if we had free market banking?

 

Then why the need for repo injections?

 

you do understand that Iran gave us that money to buy weapons, we reneged on the deal, so we had to give them their money back - it was their money