US Banks Are Taking Liquidity from the Federal Reserve in Wake of SVB Implosion

Sharing is Caring!

by Chris Black

These are the biggest loans (a little bit different from QE though, as they must be repaid with interest >0 ) in the history of the Federal Reserve by the way.

RT:

US banks took out a combined $164.8 billion in loans from two Federal Reserve facilities over the past fortnihght, Fed statistics released on Thursday showed. This came as lenders rushed to backstop liquidity in the event of bank runs in the wake of the Silicon Valley Bank collapse.

According to the data, US lenders borrowed $152.85 billion from the discount window in the week ending March 15, up from $4.58 billion in the previous week. The figure, which marks an all-time high, topped a record set during the 2008 financial crisis.

See also  Risk of "Volmageddon" looms as banks face $500B unrealized losses; $NVDA falls below 21-day EMA; Amazon's "Just Walk Out" closure challenging AI perception.

 

Keep in mind that the Federal Reserve can print to infinity in their own words, i.e. there’s never going to be a shortage of cash:

The point being, if the Federal Reserve really wants to secure bank deposits, there’s no problem whatsoever.

See also  Central Banks quietly amass gold

Everything is just numbers on the screen, as in there’s no actual money printing necessary, and no one goes to their local bank branch to demand 100k in cash.

The only issue with this story is that, given current events (Russia et al), the US dollar will not be the world’s reserve currency for too long, due to sheer stupidity.

Beside the retarded Russia sanctions which pushed most of the world away from the US, now we have China brokering peace between the Saudis and Iran – and where do you think that goes?

 Towards more reliance on the American financial system?

Views: 93

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.