wait until you realize that the deposits that first republic received last week came from the big 4 banks... which were flush from cash they received from transfers from smaller banks like first republic.

we are living in financial clownworld now.

The "real" circular economy.

By having banks buy government bonds and/or lend money to the government, they are essentially investing in the stability of the government itself. This can help build confidence in the government and the banking sector, which can contribute to overall stability. Of course, there are still real risks and challenges that exist, such as potential default by the government or problems within the banking system.

That's because it is a charade. The fed's entire job is basically a dependency injection in an otherwise free market. Money creation in a modern economy is literal magic and while they may claim it's tied to "metrics" these metrics are tenuous at best. Unfortunately, the clown show has been run for the last 20 years by people who do not have the country's best interests at heart. We are now reaping what was sown with the 20 years of free money to banks.

> We are now reaping what was sown with the 20 years of free money to banks.

This argument ignores the "black swan" events of covid, ukrainian invasion by russia, supply bottlenecks of various kinds, and trade tensions with china, all happening at the "same" time within the last 3 years.