Re:Wealth Management Products in China (2015) [pdf]
by JumpCrisscross on Wednesday October 25, 2017 @03:44AM
(#15548249)
> What alternative would they have, besides closing the banks?
Receivership [0]. Note that if your bank closes, the FDIC still sends you your money.
> How long would that last in such a scenario?
The FDIC has about $7 trillion in insured deposits [1].
In the crisis, between TARP [2] and TALF [3], the federal government printed $1.5 trillion. (About $1.8 trillion in 2017 dollars [4].) Meanwhile, the Fed bought $4.5 trillion in assets through its quantitative easing programmes [5].
Adjusting for inflation, we probably saw close to $7 trillion in fiscal and monetary stimulus.
Receivership [0]. Note that if your bank closes, the FDIC still sends you your money.
> How long would that last in such a scenario?
The FDIC has about $7 trillion in insured deposits [1].
In the crisis, between TARP [2] and TALF [3], the federal government printed $1.5 trillion. (About $1.8 trillion in 2017 dollars [4].) Meanwhile, the Fed bought $4.5 trillion in assets through its quantitative easing programmes [5].
Adjusting for inflation, we probably saw close to $7 trillion in fiscal and monetary stimulus.
[0] https://www.fdic.gov/about/strategic/strategic/receivership....
[1] https://www.fdic.gov/bank/statistical/stats/2017jun/fdic.pdf
[2] https://en.m.wikipedia.org/wiki/Troubled_Asset_Relief_Progra...
[3] https://en.m.wikipedia.org/wiki/Term_Asset-Backed_Securities...
[4] https://data.bls.gov/cgi-bin/cpicalc.pl?cost1=1.50&year1=200...
[5] https://en.m.wikipedia.org/wiki/Quantitative_easing