Recent comments in /f/wallstreetbets

xmustangxx t1_jdx29az wrote

Reply to The economy in 2023 for dummies by Temperature_Foreign

I remember when I took my first Econ class … OP has no understanding of how banks actually operate and is missing the fact that the Fed has already set up a new facility for banks to essentially offload long dated securities to the fed. Back to school child

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Temperature_Foreign OP t1_jdwwvfy wrote

Reply to comment by [deleted] in The economy in 2023 for dummies by Temperature_Foreign

You blame the democrats recent bills, but this problem wasn't created in the past 2 years, it is part of a larger cycle, sure the democrats bills might have negative effects, but they are nowhere near the main causes of the economic situation, and really, how could a recent bill cause huge economic changes so quickly?

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VisualMod t1_jdwtq6t wrote

Reply to The economy in 2023 for dummies by Temperature_Foreign

User Report
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Account Age 2 years [^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.) [^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.)
>TL;DR: The government has to help banks by selling bonds, but in order to sell bonds they have to make them attractive to investors by setting high interest rates. However, high interest rates hurt banks because it makes it more expensive for them to borrow money.
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