Operating at the Intersection of Technology and the Capital Markets
Tag: reserves
Nobody overdoes it like the Fed, except maybe the fiscal side of Government. Not only does the Bank Term Funding Program (BTFP) make bank collateral owned as of March 12th whole, the BTFP has a more attractive rate (at today's rate), compared to the Fed's discount window. When a bank borrows from the Fed's discount … Continue reading Expect Banks To Borrow Heavily from BTFP
Money is tight when we observe the monetary base (currency in circulation plus reserves). It is dangerous to shrink the monetary base at the pace in which we have done so as interest rates rise. Doing so could be the difference between an economic recession and a depression. One can see based on the first … Continue reading Money Is Tight. Perhaps Too Tight.
Some years ago many insurance carriers wrote tranches of long-term care (“LTC”) life insurance policies which have proved to be toxic. These “toxic” LTC policies - primarily written between 1999-2004 - were at the heart of a scathing critique of General Electric (tkr: GE) last week which ultimately accused the company of accounting fraud. While … Continue reading Toxic Long Term Care Policies: A Bane for Many. A Boon for Some.
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