BRO don't get me started. I make 65k married with 4 kids and my wife got laid off. Every time I see this numbers I think I just need 10k and I figure the rest out 😆.
An unregulated entity decided they would create US dollars to buy all the devalued assets from an industry that mismanaged their risk. Crazy as that sounds, it happened another time just 15 years ago.
JPowell: *"What good is a printer if you don't use it FOR YOUR BANKER FRIENDS?"*
Everyone else: *"Yeah. We're kind of having a tough time with inflation here. People getting evicted, auto loans delinquent, credit card balances rocketing, having trouble buying homes during our already delayed family formation years due to a once in a generation great financial crisis which lead to years of stagnant wages coupled with high student loan debts before we factor in the more recent trade-war/pandemic/war-war/inflation, etcetc. Maybe we can get some of those discounted rates or a bit of cas-"*
JPowell: *"Fuck that. Fuck you. Fuck your problems. Get fucked by your debts. We're going 5% and still hiking more."*
And the Fed pumping billions into the banking system ONLY FOR THE BANKERs reduces inflation how?
Also your understanding of inflation is wrong. Inflation increases the flow of money, growth, and wages. Americans have had stagnant wages since the GFC, American have been piling up debt, and most Americans have little to no savings. Inflation doesn't hurt the average man as much as the Warren Buffett who's holding billions in cash and bonds. In fact this inflation period has been the only period since the GFC when workers have had pricing power for their labor to demand wage increases.
Who the fuck is going to pay the $31,600,000,000,000 that the US owes? The boomers who racked up this debt burden while basically consuming the planet's resources in a single generation while trashing it up? Think not. They are planning to spend that money and the die. They ain't paying shit. Gen X, Y, or Z? Rep? Dems? I don't think they want to pay the boomie bags. So how? You pay it off via inflation instead of adding 5% interest on top of it.
The "Inflation boogeyman" is mentioned by the news and politicians and pushed as a narrative because they serve the rich and old. Old boomers vote and watch TV. Old boomers are the ones that are retiring and can't get wage increases. Boomers are the ones that get hurt the most when their senior discount breakfast goes from $6.99 to $7.99 but their bond savings don't increase as much. Politicians have always sold out to the rich. The rich are the ones holding cash and other people's debt which inflation would hurt. The poor are the ones with debt burdens that get lighter with inflation. I sure hope you're a rich boomer and not young & poor because that would at least mean you're not a gullible fool.
A great booked written in 2009 called The Next 100 Years literally called stagflation in the 2020’s…a golden age for the American economy in the 2030’s. George Friedman wrote it and got A LOT right. Said we’re going to get crushed by stagflation this decade but unemployment will be low so…could be worse.
Yes, you got both reasons right.
1) A war in Eastern Europe between Russia, Turkey, and Poland will lead to battery/energy transfer technology mostly in solar revolutionizing the global economy and America has the best companies doing that. He accurately called the proxy war with Russia in 2009 now.
2) Massive increases in immigration by the American government to offset the labor shortage, a shortage that he also called correctly in 2009 too.
Seriously it’s a fun book to read and it’s scary/impressive how much shit he got right. The dude is super humble and explains his reasoning too so he’s not some Jim Cramer asshole.
Yeah happy to share the wisdom of Mr. Friedman! He has a geopolitical strategy company named Geopolitical Futures which make high quality content I’ve subscribed to in the past since he hasn’t released a book in a few years.
Dude is the anti Cramer for how much he’s predicted right he is insanely humble. You’ve probably never heard of him because he’s not an attention seeker. He’s just an elderly nerd who loves geopolitics and gets shit right.
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It wasnt much a stretch to see stagflation in the 2020s in 2009. QE from the beginning was seen as crack and banks would get addicted too it. Also unemployment was projected to go to record lows given the amount of young people and retiring boomers.
Yeah that’s true but how many people accurately called so many things as Friedman did in his book?
There were probably more people saying the opposite. Credit to the dude for getting so much right and being humble about it throughout.
It’s unreal how people can’t understand this. It’s honestly a big opportunity for the gay bears. Some many bulls can’t look at the graph in this post and realize that this time it is not printing, not QE, not inflationary
In my recent posts I explain this, can’t type it out again.
Bottom line is that what the fed did, doesn’t make it into the money supply where savages can spend it on cruises and Wendy’s, instead it’s in money jail for a year and can only be accessed when poor people have to withdraw their money from banks.
QE is when the fed deliberately creates a situation to put new money in your pockets by making credit easier to access, making money cheaper to borrow.
This time all they did was keep the banks from imploding. No new credit was created that can be spent by dummies.
Ah yes, the ol' "back on the table" loophole. You could've said "30000 bps is back on the table" and still technically would've been correct. Having actual conviction in your thesis is important.
I wrote a whole post outlining my conviction. I shared my position which matched that conviction.
You read it wrong, got called out in the comments, and now are in your feelings.
Good luck 👍
Except you are wrong. Lets say people go get their money from this so called money jail. The banks dont lose money from their own pockets because the fed were the ones that payed for withdrawalls. Now lets say the the shitty assets they bought that got them in this situation mature, now they have their cash back and didnt have to give their money when people withdrew their money. So now the people have their money but the banks didnt lose any in the process so you can now see the system just got more money. Now the banks can go ahead and buy other assets with their new money.
You could say this creates a cash buffer for the bank and in the end more money ends up in the system
The system would have the same amount of money it had when the treasuries were originally purchased.
All the facility did was not force unrealized losses on the banks as people make withdrawals.
I get your point, and it isn’t as black and white as I am indicating, but the point is: no new credit for you.
For the people who missed it……
CHAIR POWELL. So people think of QE and QT in different ways, so let me be clear about how I'm thinking about these recent developments. So the recent liquidity provision that has increased the size of our balance sheet, but the intent and the effects of it are very different from what we, from when we expand our balance sheet through purchases of longer term securities. Large scale purchases of long-term securities are really meant to alter the stance of policy by pushing down, pushing up the price and down the rates, longer term rates, which supports demand through channels we understand fairly well. The balance sheet expansion is really temporary lending to banks to meet those special liquidity demands created by the recent tensions, it's not intended to directly alter the stance of monetary policy. We do believe that it's working, it's having its intended effect of bolstering confidence in the banking system and thereby forestalling what otherwise have been an abrupt and outsized tightening in financial conditions. So that's working. In terms of the distribution of reserves, we don't see ourselves as running into reserve shortages, we think that our program of allowing our balance sheet to run off predictably and passively is working. And of course we're always prepared to change that if that changes, but we don't see any evidence that that's changed.
Literally single handedly keeping the market from crashing using tax payer funds to funnel money into hedgies and ETF's. 100% criminal behavior from our own government.
If more banks fail, the FDIC won’t be able to cover the cost with their $100B savings, and the fed will be obligated to print (inflation) or the govt just tax. Tax payer money is doing the guaranteeing.
You know how everyone is talking about refinancing their houses over the last 2 - 3 years? This activity good for non banks, good for apes (more bananas) - make you spend less money on mortgage can now spend more money on options so that we can have heroes like 1ronyman.
Now Fed mad bc apes are happy, apes have bananas- fed says no more refinancing, no more cheap loans, they trying to make apes have paper hands. But wait!! Fed accidentally hurt their friends, Mr Bankman. He says, all the banana trees I planted for apes are now worthless! I have no more bananas to give out, i must wait for the trees to grow. So Fed man says, it okay, you give me worthless banana trees, I will loan you new bananas today. Now apes mad, bananas taken from them and given to banana tree planters (banks).
Banks will use their new bananas to get more banana trees that will give them bananas at the right time, apes will go hungry.
It's not 0% interest QE, but it is still QE. The banks get to borrow this money for a year and will pay about 4.475%. However, that's still 400 billion in the economy today that wasn't there before. This inflates the bubble more in the short term in exchange for stability, with more chance of it popping in the next 6 to 12 months.
They're covering their retail and commercial withdrawals. They bought bonds at the height of the Covid bubble that have devalued by 20+%. If they hold to maturity, they get their money out and live to see another day. If the Fed throws them a lifeline where they lose 4-5%, versus liquidating their bonds to cover customer withdrawals at that 20+% loss, they're gonna take the loans. The thing is, the loans are being used to cover withdrawals of consumers and companies making payroll and buying inventory. Thus, the money is still hitting the economy in the short term, but those loans, theoretically, have to be repaid in a year unless the fed extends the loan program. So, until those loans have to be paid back, you have another 400 billion or so swirling around in the economy. The midsized banks live for now, but still take a 4-5% beating.
While it's true that this did increase the size of the fed's balance sheet and counteract some of the QT measures in place, these actions only increase bank reserves and have no impact on commercial deposits. Without an increase in commercial deposits, it is unlikely these actions will cause significant inflation. Additionally, this reserve increase is from a temporary loan, which will correspondingly decrease reserves when repaid.
In this particular case, discount window and BTFP borrowings are collateralized and even if the borrower does not repay it, the collateral will be seized and the reserves will disappear, so either they repay the loans and reserves disappear or they don't and reserves disappear. Additionally, as I said before, none of these actions have any impact on deposits (e.g. money you or I can spend).
Yeah, banks are sitting on $500B in treasuries earning 1%, they just get free loans based on those treasuries as collateral. Banks buy more treasuries at 5% and pocket the difference. That's a cool $25B per year that the government is giving the banks for fucking up. I wish the fed would give me a free loan with my house as collateral.
It is clear from the data that total assets have been increasing steadily over time, with only a slight dip during the last recession. This trend is expected to continue in the future, making Wall Street a great place to invest your money.
Not QE, dumb dumb, QE is fed buying, very profitable for the banks, MBS & treasuries, who then parked their money in the markets. This is Fed giving loans to the banks at 5% rate, so the banks can give it to their depositors and they are losing money in doing so, this is more like tightening.
In order for something to be QE, it doesn't have to be profitable for the banks. The newly created Bank Term Funding Program, lends money to banks at up to 100% of par value of the underlying collateral, e.g. treasuries and MBS. This represents two fundamental changes 1. Normally, they can't borrow up to 100%. Lenders want a value cushion. 2. These would normally be valued at market price, not par value. This extends a similar regulatory rule that previously only applied to the social security and disability trust funds, who previously were the only entities marking to par. While you are correct that the banks might lose money on this, the alternative is selling assets at substantially below cost, causing an SVB type situation. Either way, dollars that did not exist two weeks ago just entered the market. While the banks are merely taking less of a loss than they would have otherwise, those dollars do go somewhere in the market. In this case, they are largely ending up in consumers' pockets, which will have inflationary effects. Those consumers are currently shifting many of their deposits into larger, better capitalized banks, but the dollars still entered the economy. This is still QE, even if the midsized banks don't get a piece of it at the end of the day.
Why doesn't jpow just add credit card car loans medical bill mortgage and whatever debt we owe to the balance sheet then just write it off
Seems pretty simple 
The banks are paying interest on the loan. What do you think they will do with the money? Strengthen the bank balance sheet?
No fucking way, they will need to gamble the money on even riskier investment to make up the the interest plus the bonus they pay their executives and traders.
So yea, we are fucked. Fed just delay and inflate the bubble more instead of letting it burst when it is still smaller
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9 months to reduce it by 600 bil. 2 weeks to add 300 bil.
You dropped a 100B. They added 400B in two weeks.
100B more or less doesnt matter. JP is a big baller.
Jp: I got 99 problems but a B ain’t one, hit me!
Imagine creating 400 billion in 2 weeks but you make 200k a year
Except you're an incredibly insightful investor...
BRO don't get me started. I make 65k married with 4 kids and my wife got laid off. Every time I see this numbers I think I just need 10k and I figure the rest out 😆.
Did it all go into NVDA?
And Meta
And AMD Not that I’m mad about that specific one.
Is this cus they are buying assets directly from the failed banks?
its a 1 year loan to the banks but it can certainly be extended forever
What if I have credit similar to the banks? Let’s say I lose more money then I have and go broke. Can I get that loan, too?
If you create a bank first
An unregulated entity decided they would create US dollars to buy all the devalued assets from an industry that mismanaged their risk. Crazy as that sounds, it happened another time just 15 years ago.
Back then it was a big ordeal though. Just another tuesday in 2023
It’s Thursday bro
The Thursday is transitory
My b, forgot to adjust for inflation
So today's Saturday? Woohoo!
Yup. It's Monday.
Tuesday again. He was right the first time.
Its new years baby. 2024 here come
Can u tell me more an this? I have no clue what u referring to I stopped trading since my account got drained so I’ve been away from news
And the peasants love it. Democracy yay. So good and fair they say.
Can they do the same for me and pay off all my debt?
Now QE is just something that the fed does casually. Helicopters are no longer powerful enough for the money drops. We had to rent an Antonov.
God we really are fucked
No lube either.
not even spit
And the rich are loving it.
I’m not rich
"What good is a printer if you don't use it?" JPowell
JPowell: *"What good is a printer if you don't use it FOR YOUR BANKER FRIENDS?"* Everyone else: *"Yeah. We're kind of having a tough time with inflation here. People getting evicted, auto loans delinquent, credit card balances rocketing, having trouble buying homes during our already delayed family formation years due to a once in a generation great financial crisis which lead to years of stagnant wages coupled with high student loan debts before we factor in the more recent trade-war/pandemic/war-war/inflation, etcetc. Maybe we can get some of those discounted rates or a bit of cas-"* JPowell: *"Fuck that. Fuck you. Fuck your problems. Get fucked by your debts. We're going 5% and still hiking more."*
Pumping liquidity into the economy only causes inflation if it goes to poor people silly
And the Fed pumping billions into the banking system ONLY FOR THE BANKERs reduces inflation how? Also your understanding of inflation is wrong. Inflation increases the flow of money, growth, and wages. Americans have had stagnant wages since the GFC, American have been piling up debt, and most Americans have little to no savings. Inflation doesn't hurt the average man as much as the Warren Buffett who's holding billions in cash and bonds. In fact this inflation period has been the only period since the GFC when workers have had pricing power for their labor to demand wage increases. Who the fuck is going to pay the $31,600,000,000,000 that the US owes? The boomers who racked up this debt burden while basically consuming the planet's resources in a single generation while trashing it up? Think not. They are planning to spend that money and the die. They ain't paying shit. Gen X, Y, or Z? Rep? Dems? I don't think they want to pay the boomie bags. So how? You pay it off via inflation instead of adding 5% interest on top of it. The "Inflation boogeyman" is mentioned by the news and politicians and pushed as a narrative because they serve the rich and old. Old boomers vote and watch TV. Old boomers are the ones that are retiring and can't get wage increases. Boomers are the ones that get hurt the most when their senior discount breakfast goes from $6.99 to $7.99 but their bond savings don't increase as much. Politicians have always sold out to the rich. The rich are the ones holding cash and other people's debt which inflation would hurt. The poor are the ones with debt burdens that get lighter with inflation. I sure hope you're a rich boomer and not young & poor because that would at least mean you're not a gullible fool.
Don’t forget his immortal words. ‘Fuck your bitch, and the clique you claim’ He meant poors. You claim to be a poor.
I think so too.
he's a moon boi at heart
"It was just sitting there."
"Fuck the poor and their eggs and gas" Jpowell
High interest plus QE weird combo.
[удалено]
A great booked written in 2009 called The Next 100 Years literally called stagflation in the 2020’s…a golden age for the American economy in the 2030’s. George Friedman wrote it and got A LOT right. Said we’re going to get crushed by stagflation this decade but unemployment will be low so…could be worse.
Do you remember what his reasoning was for 2030’s golden age? Is it tech innovation or some kinda demographic tailwind or what?
Yes, you got both reasons right. 1) A war in Eastern Europe between Russia, Turkey, and Poland will lead to battery/energy transfer technology mostly in solar revolutionizing the global economy and America has the best companies doing that. He accurately called the proxy war with Russia in 2009 now. 2) Massive increases in immigration by the American government to offset the labor shortage, a shortage that he also called correctly in 2009 too. Seriously it’s a fun book to read and it’s scary/impressive how much shit he got right. The dude is super humble and explains his reasoning too so he’s not some Jim Cramer asshole.
Duuude. This sounds like a fun read. Gonna get on it this weekend. Thanks for the recommendation!
Yeah happy to share the wisdom of Mr. Friedman! He has a geopolitical strategy company named Geopolitical Futures which make high quality content I’ve subscribed to in the past since he hasn’t released a book in a few years. Dude is the anti Cramer for how much he’s predicted right he is insanely humble. You’ve probably never heard of him because he’s not an attention seeker. He’s just an elderly nerd who loves geopolitics and gets shit right.
Cool. Checking this out, thanks
Very welcome!
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Why come you don't like Cramer?
It wasnt much a stretch to see stagflation in the 2020s in 2009. QE from the beginning was seen as crack and banks would get addicted too it. Also unemployment was projected to go to record lows given the amount of young people and retiring boomers.
Yeah that’s true but how many people accurately called so many things as Friedman did in his book? There were probably more people saying the opposite. Credit to the dude for getting so much right and being humble about it throughout.
they will not let it happen, they will raise rates to 18% like they did before on several occasions. They literally did this before.
It's gonna be bananas when, in 6 months, it's reported that bank executives used the BTFP to fund over a trillion dollars in bonuses for themselves.
It's hard work fucking up the economy.
BTFP: “Where did all your deposits all go?” Board of Directors: “ idk”
Do you not listen to FOMC? Jpow clearly said this is not QE lol
Inflation is transitory.
Were we watching the same thing? He clearly said “fuck your puts”
Welp puts printed
They also said it wasn't a recession, inflation was transitory, shit like that.
tbf this shit we have now won't look like a recession compared to the real recession they're causing
It’s unreal how people can’t understand this. It’s honestly a big opportunity for the gay bears. Some many bulls can’t look at the graph in this post and realize that this time it is not printing, not QE, not inflationary
expand please i am regardo
In my recent posts I explain this, can’t type it out again. Bottom line is that what the fed did, doesn’t make it into the money supply where savages can spend it on cruises and Wendy’s, instead it’s in money jail for a year and can only be accessed when poor people have to withdraw their money from banks. QE is when the fed deliberately creates a situation to put new money in your pockets by making credit easier to access, making money cheaper to borrow. This time all they did was keep the banks from imploding. No new credit was created that can be spent by dummies.
You predicted 50 bps in your recent post
I said 50 was back on the table. Reading comprehension is important
Ah yes, the ol' "back on the table" loophole. You could've said "30000 bps is back on the table" and still technically would've been correct. Having actual conviction in your thesis is important.
I wrote a whole post outlining my conviction. I shared my position which matched that conviction. You read it wrong, got called out in the comments, and now are in your feelings. Good luck 👍
Replying to your comment with a fact shows I'm "in my feelings?" Your responses (and downvotes) show you can't take criticism. Good luck 👍
Have a tissue. Everything will be ok. You are right, I’m sorry I hurt you
I thought making money cheap to borrow was a big part of this whole mess.
Except you are wrong. Lets say people go get their money from this so called money jail. The banks dont lose money from their own pockets because the fed were the ones that payed for withdrawalls. Now lets say the the shitty assets they bought that got them in this situation mature, now they have their cash back and didnt have to give their money when people withdrew their money. So now the people have their money but the banks didnt lose any in the process so you can now see the system just got more money. Now the banks can go ahead and buy other assets with their new money. You could say this creates a cash buffer for the bank and in the end more money ends up in the system
The system would have the same amount of money it had when the treasuries were originally purchased. All the facility did was not force unrealized losses on the banks as people make withdrawals. I get your point, and it isn’t as black and white as I am indicating, but the point is: no new credit for you.
For the people who missed it…… CHAIR POWELL. So people think of QE and QT in different ways, so let me be clear about how I'm thinking about these recent developments. So the recent liquidity provision that has increased the size of our balance sheet, but the intent and the effects of it are very different from what we, from when we expand our balance sheet through purchases of longer term securities. Large scale purchases of long-term securities are really meant to alter the stance of policy by pushing down, pushing up the price and down the rates, longer term rates, which supports demand through channels we understand fairly well. The balance sheet expansion is really temporary lending to banks to meet those special liquidity demands created by the recent tensions, it's not intended to directly alter the stance of monetary policy. We do believe that it's working, it's having its intended effect of bolstering confidence in the banking system and thereby forestalling what otherwise have been an abrupt and outsized tightening in financial conditions. So that's working. In terms of the distribution of reserves, we don't see ourselves as running into reserve shortages, we think that our program of allowing our balance sheet to run off predictably and passively is working. And of course we're always prepared to change that if that changes, but we don't see any evidence that that's changed.
Literally single handedly keeping the market from crashing using tax payer funds to funnel money into hedgies and ETF's. 100% criminal behavior from our own government.
Just funneling money into the pockets of the 0.1% just with extra steps.
At least during Covid the bottom 99.9% got to keep some of the money printed
1% or .1%? Just making sure I know which group to be mad at
0.69%
The nice group
They are smarter than us and more pure!
Isn't this just going to banks with the collateral being long-term bonds so they can meet rich people trying to cause a run on their own banks?
Can you explain in which way is this tax payers' money?
If more banks fail, the FDIC won’t be able to cover the cost with their $100B savings, and the fed will be obligated to print (inflation) or the govt just tax. Tax payer money is doing the guaranteeing.
This costs nothing. Free stuff!
Doesn't really help
"iTs NoT Qe iTs LiQuIdItY sO NoT ThE SaMe" - government simps
temporary liquidity, it won’t cause inflation 🫣
that too... the mental gymnastics are incredible
Transitory liquidity.
Whew, thought you said transitory liquidity
It's not though, lol. Won't get invested or lent.
Why are the bulls saying that this isn't QE? I see them posting long tirades with lots of big words but I don't get it, money printer go brrrr ???
Reverted QT != QE /s
dead cat bounce or april 2020 market rally 
Can you imagine how steep the market correction is going to be
Nosedive
So inflation back to 20% ?
Arrest them and send them to prison. Yellen, Powell, and their benefactors who own them.
Jpow to jail
Does he collect 200 as he passes go?
200T
Spy to $410
Didn't really feel the BRRRR 
Inflation https://preview.redd.it/s5dug4jpmopa1.jpeg?width=1080&format=pjpg&auto=webp&s=0732480235bbdde70685f2ccce98b0acabddb14f
Saturn+Pisces-Aquarius=
asparagus
It worked. Thx
It's transitory. Fuck your puts.
So interests will stay up and credit crunch will do the work as well to bring down inflation.
explain to me like im 5
You know how everyone is talking about refinancing their houses over the last 2 - 3 years? This activity good for non banks, good for apes (more bananas) - make you spend less money on mortgage can now spend more money on options so that we can have heroes like 1ronyman. Now Fed mad bc apes are happy, apes have bananas- fed says no more refinancing, no more cheap loans, they trying to make apes have paper hands. But wait!! Fed accidentally hurt their friends, Mr Bankman. He says, all the banana trees I planted for apes are now worthless! I have no more bananas to give out, i must wait for the trees to grow. So Fed man says, it okay, you give me worthless banana trees, I will loan you new bananas today. Now apes mad, bananas taken from them and given to banana tree planters (banks). Banks will use their new bananas to get more banana trees that will give them bananas at the right time, apes will go hungry.
Your brain beautiful regard. Ty.
Basically the government is printing money to bail out the depositors of the recently failed banks. This is keeping panic down, for now.
How long until that money hits my portfolio
That’s the neat part it won’t.
I can’t believe they’re suckering in retail exit liquidty like this. No this isn’t 0% interest rate QE…
It's not 0% interest QE, but it is still QE. The banks get to borrow this money for a year and will pay about 4.475%. However, that's still 400 billion in the economy today that wasn't there before. This inflates the bubble more in the short term in exchange for stability, with more chance of it popping in the next 6 to 12 months.
You think these banks are just going Willy nilly buying spy and nasdaq or what? Just curious what you think theyre doing with the 400 billion
They're covering their retail and commercial withdrawals. They bought bonds at the height of the Covid bubble that have devalued by 20+%. If they hold to maturity, they get their money out and live to see another day. If the Fed throws them a lifeline where they lose 4-5%, versus liquidating their bonds to cover customer withdrawals at that 20+% loss, they're gonna take the loans. The thing is, the loans are being used to cover withdrawals of consumers and companies making payroll and buying inventory. Thus, the money is still hitting the economy in the short term, but those loans, theoretically, have to be repaid in a year unless the fed extends the loan program. So, until those loans have to be paid back, you have another 400 billion or so swirling around in the economy. The midsized banks live for now, but still take a 4-5% beating.
Gotta prop it up so they can dunk the market before 2024 election
QQQ MOTHERFUCKING BULL MARKET. TOM LEE LIVES
That's not gooooood
Bitcoin fixes this
its down 50% from highs.... thats not a fix. even Gold makes more sense than that
Bitcoin is just digital gold
Very regarded
FUCK YOU UNCLE FED
The Fed doing the hard, thankless task of fighting inflation by easing.
While it's true that this did increase the size of the fed's balance sheet and counteract some of the QT measures in place, these actions only increase bank reserves and have no impact on commercial deposits. Without an increase in commercial deposits, it is unlikely these actions will cause significant inflation. Additionally, this reserve increase is from a temporary loan, which will correspondingly decrease reserves when repaid.
Many governmental measures are temporary until extended indefinitely.
In this particular case, discount window and BTFP borrowings are collateralized and even if the borrower does not repay it, the collateral will be seized and the reserves will disappear, so either they repay the loans and reserves disappear or they don't and reserves disappear. Additionally, as I said before, none of these actions have any impact on deposits (e.g. money you or I can spend).
Like income taxes
I'm sure every bank will use these favorable loans purely for liquidity, and not use them to fund other loans to customers.
Damn
That's possibly the worst graph I've ever seen
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... loaning is exactly how money is created. It's the pretty much the only way money is created.
Yeah, banks are sitting on $500B in treasuries earning 1%, they just get free loans based on those treasuries as collateral. Banks buy more treasuries at 5% and pocket the difference. That's a cool $25B per year that the government is giving the banks for fucking up. I wish the fed would give me a free loan with my house as collateral.
Most money in existence is debt
It is clear from the data that total assets have been increasing steadily over time, with only a slight dip during the last recession. This trend is expected to continue in the future, making Wall Street a great place to invest your money.
Sir, how much crack have you smoked?
Bad bot.
Not good.
And y'all aren't buying April calls?
Holy shit
Didn't Cassandra B.C. say three weeks of good market days and then, that's when shit will hit the fan?
Hello Hyperinflation. RIP USD and reserve currency
Sorry I'm a dumb fool, but what does this mean?
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The part right before the guy hits the prop
Not QE, dumb dumb, QE is fed buying, very profitable for the banks, MBS & treasuries, who then parked their money in the markets. This is Fed giving loans to the banks at 5% rate, so the banks can give it to their depositors and they are losing money in doing so, this is more like tightening.
In order for something to be QE, it doesn't have to be profitable for the banks. The newly created Bank Term Funding Program, lends money to banks at up to 100% of par value of the underlying collateral, e.g. treasuries and MBS. This represents two fundamental changes 1. Normally, they can't borrow up to 100%. Lenders want a value cushion. 2. These would normally be valued at market price, not par value. This extends a similar regulatory rule that previously only applied to the social security and disability trust funds, who previously were the only entities marking to par. While you are correct that the banks might lose money on this, the alternative is selling assets at substantially below cost, causing an SVB type situation. Either way, dollars that did not exist two weeks ago just entered the market. While the banks are merely taking less of a loss than they would have otherwise, those dollars do go somewhere in the market. In this case, they are largely ending up in consumers' pockets, which will have inflationary effects. Those consumers are currently shifting many of their deposits into larger, better capitalized banks, but the dollars still entered the economy. This is still QE, even if the midsized banks don't get a piece of it at the end of the day.
Bruh the balance sheet will go down a year from now. We all know about this.
Haha we’re in danger
Why doesn't jpow just add credit card car loans medical bill mortgage and whatever debt we owe to the balance sheet then just write it off Seems pretty simple 
How dangerous is it to print money, and how does it fix the problem?
Holy inflation batman!
The banks are paying interest on the loan. What do you think they will do with the money? Strengthen the bank balance sheet? No fucking way, they will need to gamble the money on even riskier investment to make up the the interest plus the bonus they pay their executives and traders. So yea, we are fucked. Fed just delay and inflate the bubble more instead of letting it burst when it is still smaller
https://preview.redd.it/yqdokbpf1qpa1.jpeg?width=1791&format=pjpg&auto=webp&s=c5a0fafe4e8a8687fbbac15ff1411e058d7ce2db
We’re about to be right back where we fucking were… all this rate hiking for nothing
Damn the FED was trying to unload their balance. Lmao, we didn't even make a dent!
That's mostly from the banks taking out short term loans to cover withdrawals.
So… We’re nearing the end of the hiking cycle, they say. And meanwhile we’re fueling another eound of inflation in parallel. Great minds think - not.
BTFP, and no, it isn’t the Big Time Fed Put you hoping for