Recent comments in /f/wallstreetbets

TSLA240c t1_jdhw559 wrote

Reply to comment by nyse125 in Fed Balance Sheet by Mega-Lithium

Do you honestly believe banks will magically be liquid in a year?

The second the Fed goes to unwind this program it will put us right back in the same boat. This happens every single time the Fed attempts to unwind it’s “temporary” liquidity programs.

The only way to unwind debt is to bankrupt it or monetize it, borrowing from Visa to Amex is a stall tactic not a solution.

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anomhali t1_jdhiiwi wrote

Okay banks will never stabilize, If the current rate continues, they will have huge amount losses because %99 mortgages are around 0%, but they need to borrow at 6%, the fed cannot drop the rate because it will cause hyperinflation, but If fed does not drop the rate, then including the giants one, all banking system will COLLAPSE. Especially, the US will get duck with 30-year mortgages, in other developed countries, the people going to suffer and the home market COLLAPSE.

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Mega-Lithium OP t1_jdhgf7a wrote

Reply to comment by tslGUH in Fed Balance Sheet by Mega-Lithium

Yes, around 2.6 Trlllion of it

https://fred.stlouisfed.org/series/WSHOMCB

Remember that the entire QE thing was supposed to be a very short term emergency fix back in 2010.

Ben Bernanke then Janet Yellen and now Jerome Powell have kept this thing going.

And, I interestingly, the GSEs (Fannie Mae & Freddie Mac) have been in “conservatorship” for 14 years!!! When do they just call that a nationalization?

They pumped liquidity into the economy and Blackstone private equity swallowed up all the houses.

Why?

So we are a nation of “have nots” and renters

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