/biz/ - Business & Finance

>>54077556
This >>54077601

But not only that, the Fed just stated that they WILL offer loans to ANY bank and will take US Treasuries as collateral, valued at PAR. This means that they will loan banks $ up to the value of these treasuries at maturity, instead of market rate.

So if a bank that owns a 10 year treasury paying 1% were to try to sell it on the open market, they'd get squat because short term treasuries are paying 4-5%.

Now, banks can use those shitty bonds to get loans for the amount they'd have gotten if they let those treasuries meet maturity ten years from now.

A bailout by any other name still fucks us all.