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A comment on Federal Reserve lent $300B in emergency funds to banks in the past week. Parent comment

Re:Federal Reserve lent $300B in emergency funds to banks in... by Retric on Monday March 20, 2023 @11:52AM (#35233407)
It make a huge difference if the bond fails.

Bob the bank buys a bond from Alice. Criss at the central bank in charge of QE buys if from Bob. Alice goes bankrupt and Bob doesn’t care.

Bob the bank buys a bond from Alice. Criss at the central bank loans Bob money. Alice goes bankrupt and Bob’s bank fails.

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Re:Federal Reserve lent $300B in emergency funds to banks in... by antibasilisk on Monday March 20, 2023 @01:40PM (#35235449)
Except that Alice here is the government, and in both scenarios Adam The Average Guy loses purchasing power, which is the whole point. The distinction here is purely nitpicking.
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Re:Federal Reserve lent $300B in emergency funds to banks in... by Retric on Monday March 20, 2023 @02:54PM (#35236706)
Again no, the government accepts loans to private citizens as collateral in these loans.

As a rule these banks just don’t own that many government bonds the returns suck.

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