Why I'm Worried About the Repo Market

Re:Why I'm Worried About the Repo Market by delfinom on Wednesday September 25, 2019 @10:23PM (#21077585)

>We don't know what interest rates would be if the fed wasn't promising free money to the big banks. My credit union can offer 2.0%, why can't Bank of America or Chase or Wells Fargo?

Because banks aren't around to make the customers money, they are there to give the shareholders dividends.

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Re:Why I'm Worried About the Repo Market by freejulian85 on Wednesday September 25, 2019 @10:25PM (#21077595)

> Because banks aren't around to make the customers money, they are there to give the shareholders dividends.

Fine, but that doesn't entitle them to free money from the Fed.

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Re:Why I'm Worried About the Repo Market by TuringNYC on Wednesday September 25, 2019 @10:59PM (#21077740)

Once you are a sufficiently powerful and influential entity, you write your own entitlements and the government delivers them. We saw this clearly in 2008 and 2009.

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Re:Why I'm Worried About the Repo Market by vuln on Wednesday September 25, 2019 @10:46PM (#21077687)

For the Fed it’s just the “cost of doing business” at zero cost to them.

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