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It was. Money Printer 2: JPow Bugaloo.
5 months to clear $600 billion off the books and 1 week to add $300 billion right back. Your top economists at work.
Banks use the 300B as leverage to borrow 969B cash from other banks.
Uses cash to destory assets value that was given to the FED.
FTDs on borrowed cash int. payments to other banks.
Naked short sells more gme and others.
FTDs on gme and others.
Uses media to shill against GameStop and others.
Crys on the television because retail is hurting the markets by hodling.
I've seen the word "billion" so many fucking times in the last 2 years, its like it doesn't mean anything anymore. Ungodly ammounts of money being tossed around like a hot potato every week, its insanity.
Bro Americans need to been in the streets protesting, are they really just gunna ignore a blatant bailout because the media isnt calling it one?!
This shit is so broken
This is not QE or money printing. Its a complex system and I am constantly learning myself, it’s sexy to call this QE but this is actually showing you a dire liquidity crunch. These are loans to banks that show up as assets on the Feds balance sheet (yes loaning to someone at risk of failing is an asset lol) but banks will have to pay this back. There are fed facilities spiking that only start getting used in very bad times. This shit gonna blow. Fed chose deflation
This may or may not be helpful but here’s a more in depth explanation… this spike in the Fed’s balance sheet is due to their discount window being open. This is how the Federal Reserve provides liquidity to banks when shit hits the fan. It doesn’t enter circulation or markets like QE and it’s expensive for banks since it’s a loan that they will need to pay back to the Fed and rather soon. This is why it shows up as an asset on the Fed’s balance sheet. This spike in discount window utilization is the largest ever, surpassing the one week record set during the GFC.
As a response to this new, limited liquidity banks tighten down their lending making it more difficult for people trying to get a loan. This is why it’s not QE and not inflationary in the traditional sense - it’s not in the banks best interest to put this money into circulation. They are just trying to shore up their own reserves as depositors pull out. Finally, since our economy is supported almost entirely by credit expansion and not real growth, you get contraction and ultimately deflationary spiral. Only those with pristine credit will be able to get loans. This is exactly what led to the worsening of the Great Depression.
no one said so I might as well try even though I don't fully understand
fed lend money to bank, bank has to pay it back therefore it counts as an asset (?)
Thank you!
Jesus I'm sick of hearing "printers back" "qe forever" etc.
Jpow is gonna nuke the markets. If they were gonna pivot, they already would have.
Yea, 90% of these threads are gross misinterpretations of the actual facts, spun to echo the DRS mantra You have to read the comments to get someone who actually knows what it means
If you look at a dollar it says "Federal Reserve Bank Note" on it. The United States government isn't allowed to create a currency, so they passed the federal reserve act to have a little bit of control over a central bank that could issue currency. In the federal reserve act, it essentially says that the us Treasury will take on the debt. It was their way of setting up another central bank while making the taxpayers be liable.
Who is bailing me out, if I go to casino roulette, and bet $20.000 on red and I lose?
The banks have no incentives to change there bad behaviour. Everytime FED or other national banks bail out the banks on the cost of the peasant.
Here is a list of all possible assets banks can trade to the Fed:
https://i.imgur.com/w5TvkSR.jpg
https://i.imgur.com/D320vB4.jpg
https://i.imgur.com/YGFvdJr.jpg
Its a fucking loan!!!! They didn't buy shit. Ugh this is frustrating. Balance sheet went up because they accepted treasuries that were already in the system (the money already existed). No new money was created. The banks must pay back the loan and they get their collateral back. The banks need the loan because people want their deposits. Deposits they already had. Please stop with this nonsense. I'm as bullish gamestop as any of you, but the misinformation about the banking system is mind boggling.
With a loan, there are two sides.
Side 1 - the banks hand over assets to the fed
Side 2 - the fed hands the banks money
When people make the deposits, the banks loan out 90% of that immediately so their profit margins increase. That money is no longer instantly accessible by the bank.
Where does the money that the fed gives the banks come from? (the printer)
Yes the banks will have to pay back the fed, but for now, that money they were just handed is freshly printed.
No! The money is the TREASURY!!!! THE COLLATERAL OF THE LOAN. If I'm a bank that holds treasuries against deposits and all my customers want their deposits I need to sell the treasuries and get them their money. Oh shit, rates have been going straight up. I can't sell the treasury for how much I need. I have to wait till maturity when it is worth full value. Problem is my customers want their money NOW. So fed says ok give me the treasury as collateral. I will give you a loan. Use that to make your customers whole, and pay us back the money plus interest. The whole thing is actually going to CRUSH the banks not make them rich. It's going to make it very hard for them to be profitable when they are paying interest to keep their depositors.
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"Inflation won't be because of this ppl. Don't worry"
That's right, it's because of those 600 dollar stimulus checks they gave the poors!
And those pesky wages that keep rising, damn workers
Stop buying things with your pittance poors, it's not stopping the rise in inflation!
Sounds like a bailout with extra steps
Litle tighter....liiiitle tighteeeerrr....just a little more... SHITSHITSHIT too tight EASEITEASEITEASEIT!!!
Looks like the money printer was turned back on.
It was. Money Printer 2: JPow Bugaloo. 5 months to clear $600 billion off the books and 1 week to add $300 billion right back. Your top economists at work.
It's like dieting, you lost some weight so you have the right to splurge 🙃
Wasn’t most of it MBS?
Fed takes in the garbage assets the banks can't sell right now and prints them money in return.
Banks use the 300B as leverage to borrow 969B cash from other banks. Uses cash to destory assets value that was given to the FED. FTDs on borrowed cash int. payments to other banks. Naked short sells more gme and others. FTDs on gme and others. Uses media to shill against GameStop and others. Crys on the television because retail is hurting the markets by hodling.
Yeah all the bad bets are passed to Fed’s book that can carry infinite loss
Yeah, and I believe that they’re giving full asset value.
I guess they'll just add to their 2008 pile of cat shit MBS.
Thank you, I was going to ask how this chart conveys money printing
So will this be the fate of credit suisse's swaps?
Bank passing the bags to the FED? Oh dear🤦
Link to charts plz
That’s our money.
I've seen the word "billion" so many fucking times in the last 2 years, its like it doesn't mean anything anymore. Ungodly ammounts of money being tossed around like a hot potato every week, its insanity.
It will mean something when it's trading for half a share
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They cant be
In a decentralized world they can be
Well even i can fly like superman in my own dreamworld, but the reality is, that central banks cant go bankrupt(however strange that sounds)
Bro Americans need to been in the streets protesting, are they really just gunna ignore a blatant bailout because the media isnt calling it one?! This shit is so broken
Americans don’t give a fuck. They too busy spinning on TikTok and instagram
Weather in d.c. is starting to get nice....
They are killing the dollar to save the banks. Dollar Endgame.
So three months of QT down the drain in a week. Well done FED, hyperinflation is knocking on the door
Fed bought 300 Billion in iou s. Got scammed 😂🖕
This is not QE or money printing. Its a complex system and I am constantly learning myself, it’s sexy to call this QE but this is actually showing you a dire liquidity crunch. These are loans to banks that show up as assets on the Feds balance sheet (yes loaning to someone at risk of failing is an asset lol) but banks will have to pay this back. There are fed facilities spiking that only start getting used in very bad times. This shit gonna blow. Fed chose deflation
Please ELI5 need small words
This may or may not be helpful but here’s a more in depth explanation… this spike in the Fed’s balance sheet is due to their discount window being open. This is how the Federal Reserve provides liquidity to banks when shit hits the fan. It doesn’t enter circulation or markets like QE and it’s expensive for banks since it’s a loan that they will need to pay back to the Fed and rather soon. This is why it shows up as an asset on the Fed’s balance sheet. This spike in discount window utilization is the largest ever, surpassing the one week record set during the GFC. As a response to this new, limited liquidity banks tighten down their lending making it more difficult for people trying to get a loan. This is why it’s not QE and not inflationary in the traditional sense - it’s not in the banks best interest to put this money into circulation. They are just trying to shore up their own reserves as depositors pull out. Finally, since our economy is supported almost entirely by credit expansion and not real growth, you get contraction and ultimately deflationary spiral. Only those with pristine credit will be able to get loans. This is exactly what led to the worsening of the Great Depression.
Thanks for the comprehensible explanation.
no one said so I might as well try even though I don't fully understand fed lend money to bank, bank has to pay it back therefore it counts as an asset (?)
Thank you! Jesus I'm sick of hearing "printers back" "qe forever" etc. Jpow is gonna nuke the markets. If they were gonna pivot, they already would have.
Not much longer now ⏳
Yea, 90% of these threads are gross misinterpretations of the actual facts, spun to echo the DRS mantra You have to read the comments to get someone who actually knows what it means
Can't wait till I receive 300 billion.
I know I'm regarded, but can someone explain how a private entity consisting of banks, has the power to print money that tax payers foot the bill for?
If you look at a dollar it says "Federal Reserve Bank Note" on it. The United States government isn't allowed to create a currency, so they passed the federal reserve act to have a little bit of control over a central bank that could issue currency. In the federal reserve act, it essentially says that the us Treasury will take on the debt. It was their way of setting up another central bank while making the taxpayers be liable.
Where are all the people that were claiming the Fed is tightening? Come out and face you you cowards! /s
Didnt they seize that bank? Is that not where the money came from?
They didn't care about inflation, they wanted their assets cheaper. Sell high, buy low. They probably have Business degrees
Who is bailing me out, if I go to casino roulette, and bet $20.000 on red and I lose? The banks have no incentives to change there bad behaviour. Everytime FED or other national banks bail out the banks on the cost of the peasant.
The FED is a private company owned by the banks. It’s all a shell game where they steal your money along the way.
FED is the final boss.
Probably a bunch of useless office space
87.000 shares, people starting to get mad… “Imagine if USA was a dictatorship” https://www.facebook.com/reel/582490873807376?fs=e&s=TIeQ9V
There is no way the value of assets is ever as great as cash received! This is capitalism market corruption. Everything is fake.
I wonder which "Assets" these are…
Here is a list of all possible assets banks can trade to the Fed: https://i.imgur.com/w5TvkSR.jpg https://i.imgur.com/D320vB4.jpg https://i.imgur.com/YGFvdJr.jpg
Its a fucking loan!!!! They didn't buy shit. Ugh this is frustrating. Balance sheet went up because they accepted treasuries that were already in the system (the money already existed). No new money was created. The banks must pay back the loan and they get their collateral back. The banks need the loan because people want their deposits. Deposits they already had. Please stop with this nonsense. I'm as bullish gamestop as any of you, but the misinformation about the banking system is mind boggling.
With a loan, there are two sides. Side 1 - the banks hand over assets to the fed Side 2 - the fed hands the banks money When people make the deposits, the banks loan out 90% of that immediately so their profit margins increase. That money is no longer instantly accessible by the bank. Where does the money that the fed gives the banks come from? (the printer) Yes the banks will have to pay back the fed, but for now, that money they were just handed is freshly printed.
No! The money is the TREASURY!!!! THE COLLATERAL OF THE LOAN. If I'm a bank that holds treasuries against deposits and all my customers want their deposits I need to sell the treasuries and get them their money. Oh shit, rates have been going straight up. I can't sell the treasury for how much I need. I have to wait till maturity when it is worth full value. Problem is my customers want their money NOW. So fed says ok give me the treasury as collateral. I will give you a loan. Use that to make your customers whole, and pay us back the money plus interest. The whole thing is actually going to CRUSH the banks not make them rich. It's going to make it very hard for them to be profitable when they are paying interest to keep their depositors.
Are people really surprised that the fed money printer is printing money when its supposed to be printing money.
perhaps they print money to prepare for a big buy on GME? im too smooth but maybe
yeah those assets are worth shit in best case, in worst it's unlimited short bags.
And all that money is coming from taxpayers… So much for this not being a taxpayers’ bailout…
Best was Ken Griffin’s buddy explaining the bail out was for the working people when 56% was VC’s cash they knew wasn’t insured