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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 @09:07PM (#35225891)
What regulators should have done starting a year ago, and can still do now, is force banks to restore the mark to market value of their equity cushions via share sales.
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Re:Coordinated central bank action to enhance the provision ... by lowkey on Sunday March 19, 2023 @09:34PM (#35226144)
I agree with that as a short-term strategy to address the immediate crisis. However if we want to avoid more crisis in the future I think it is necessary to re-examine the fundamental assumptions of the existing model.

Also, we have to do something about the issue of regulatory capture. The Fed knew that hundreds of banks were insolvent as far back as September [0], yet they did nothing to protect depositors. Why not and why should we trust the Fed going forward given their terrible terrible track record?

The Fed gave us a decade of zero interest rates. The Fed told us there would be no inflation, then they told us inflation was transitory. As far as I am concerned the Federal Reserve is nothing more than a centralized public relations arm of the banking industry.

[0] https://mobile.twitter.com/balajis/status/163733241114198835...

Edit: Added a source

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