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A comment on Coordinated central bank action to enhance the provision of US dollar liquidity. Parent comment

Re:Coordinated central bank action to enhance the provision ... by bradleyjg on Sunday March 19, 2023 @09:05PM (#35225869)
There isn’t a liquidity crisis. The government debt that triggered all this is highly liquid. The banks have a solvency crisis. Hence the cash giveaway disguised as a lending program.
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Re:Coordinated central bank action to enhance the provision ... by lazide on Sunday March 19, 2023 @09:30PM (#35226108)
Kinda right?

A bank which is insolvent/bankrupt but has plenty of cash on hand doesn’t need this, only banks which are both insolvent AND need to recognize that fact because they don’t have cash on hand to meet current withdrawals?

Otherwise they can keep Wil-E-Coyote’ng off the cliff for quite awhile longer as long as they don’t mark to market.

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