Sunday 15 March 2020

The Fed Surrenders To The Inevitable Depression.

This is what's key: reserve requirement ratios for a large group of banks has been cut to zero-- that is a tacit admission that those banks are already insolvent and simply unable to meet normal reserve requirements. In English, they likely have less than one dollar on deposit for every ten dollar loan made. The above makes an eventual run on the banks inevitable.

Meanwhile, the guillible will focus on a Fed Funds Rate now set at 0.25%. The Fed will also purchase Treasuries and Mortgage-backed Securities to the tune of 700 billion dollars.

If you weren't previously inclined to panic, might as well start now because this Depression is totally out of control.

No comments:

Post a Comment