hockeypilot44

Did you know Lemmy makes cameo in that scene and says, “I was editor of the school magazine”?

SonicFlyer

PBS Frontline loves to lie. I wouldn't trust them any further than I could throw them. They could be talking about current weather conditions and still be telling lies.

BApilot78

Here’s betting the Fed or ECB dive into the rescue yet again with more swap lines and money printing. This charade can only go on for so long though.

chrisreedrules

Thats my bet. Money machine goes bbbrrrrrr.

JulesWinfield

The fractional reserve banking model, along with fiat currency, has always been smoke and mirrors, as it’s all backed by the faith in the US government’s ability to pay debts and print money.

Dobbs18

I doubt the FED wanting to curb inflation for the past year+ will print more money. They are probably welcoming this and hoping for a “mini-recession”(that’s my hope, that it’s mini). But I wouldn’t be surprised if the political pressure to print the money out weighed their decision making…the media makes these things worse than they should be as others have said before.

BApilot78

Swap lines are pretty much the same as printing money without being out and out QE, they’ll pay for the crappy MBS etc at par

Excargodog

Actually, they are REQUIRED to hold a certain amount of their deposits in “safe” bonds, which is pretty much defined as treasuries. The problem is that long term bonds are basically leveraged to the short term interest rates. With the Fed dramatically RAISING short term interest rates the market value of long term treasuries decrease markedly.

https://www.usbank.com/investing/fin...ect-bonds.html

That’s no big deal if you hold them to maturity, they will eventually be paid off at the face amount, but if you wind up with so many noncallable loans that you are forced to sell those bonds before maturity, you are doing so at a significant loss. And the very act of selling those at a loss signals to every other account holder that the bank is short on fluidity, and everyone else wants to pull their money out, not wanting to be the one without a chair when the music stops…

TransWorld

There are two bundles of securities. AFS = available for sale that are marked to market and HTM = hold to maturity, usually illiquid. HTM do not have to be marked down in a rising interest environment. If they have to sell the HTM securities, they get the cash, but it can be at fire sale prices and the balance sheet takes a hit. That is what happened.

Slick111

Good one, Robert!

I’m guessing that “good ol’ boy” video didn’t get the job done.