The banks all know the collateral being offered is toxic-waste sh*t.
Fed Emergency Bank Bailout Facility Usage Hits New Record High; Money Market Funds See Small Outflow https://t.co/ZO97GCHNT5
— zerohedge (@zerohedge) June 15, 2023
They’re def hoarding them
Interbank lending has completely plunged as banks began hoarding reserves instead for the IOER which has created issues of its own👇🏻
In 07-08 I understand why they did it amid FFR under huge pressure, but since?
great book on this is FLOORED by Selgin pic.twitter.com/VYDvPQ36ZP
— Adem Tumerkan (@RadicalAdem) June 3, 2023
h/t Simian_Stacker