/biz/ - Business & Finance

>>54186900
>who?
>>54186937
>Qui?????
ah, you want to go a bit deeper down the rabbit hole, yes?
see, the assets of the failing banks are taken over by...the FDIC
well, you might think that's natural, since they're responsible for getting the money back to cover people's losses, but what do they really do with this real estate?
well, they can sell it directly, and it does happen, but on a large scale that would be practically impossible, so what else can they do than to...find an even larger bank to cover it?
>When a bank fails, the Federal Deposit Insurance Corporation (FDIC) will arrange the sale of the bank customer's assets to a healthy bank, or, less commonly, the FDIC will pay the bank deposits back directly.
well, alright
now, if you're lucky and the assets aren't getting out of hand, you've got a lot of bigger banks who have taken over some really horrible mortgages, or outright foreclosed homes that they need to sell, but you can start to see how this ripples through the system, and no one wants to be left holding the bags containing these awful assets
so, what happens when the pressure becomes too much when they pull a "squeeze"?
well, at this point the larger banks start failing, and the FDIC obviously can't sell all that real estate and those mortgages, so who will come to the rescue?
well, you know who, as they literally call themselves the "lenders of last resort"
>Unbelievably, in this situation the Federal Reserve keeps on buying mortgages. It buys a lot of them and continues to be the price-setting marginal buyer or Big Bid in the mortgage market, expanding its mortgage portfolio with one hand, and printing money with the other. It should have stopped before now, but the purchases, financed by newly created fiat money, or monetization, go on.
>[...]
>The total assets of the Federal Reserve reached $8.7 trillion in November 2021. This is just about double the $4.5 trillion of November 2016, five years before—and we thought it was really big then.

>>50752177

daily reminder

This real inflation is at least 400%.

>>50276774
>justifying greed

>>49601898
was overall a good thing but wasn't enough. there's still plenty we need to do, for example the extreme protectionism china has for their entertainment industry under the guise of "haha it's just standard communist censorship :)" is ridiculous and we've let them get away with it for too long.

also i want to say that trump is a keynesian kike that wants to lower interest rates to get richer at the expense of people who don't already own assets

>>49535866
This is assuming that they have absolutely nothing to do with inflation in the first place, which isn't true.

>>49511380
money printing=inflation, simple as

>>49278917
keynes is history's greatest monster