Toddsterpatriot
Diamond Member
I'm guessing other people's money or a guarantee from the New York Fed?What do investors want in order to lock up their promised assets into such a project for years?
Wall Street’s Financial Crisis Preceded COVID-19: Chart and Timeline
"Last year, the Fed intervened in the repo loan market on September 17 for the first time since the financial crash of 2007 to 2010 (and five months before the first reported death in the U.S. from COVID-19).
"The Fed’s emergency repo loans outstanding last year hit a peak of $236.6 billion on December 18, 2019 — $100 billion more than during the worst financial crisis since the Great Depression."
Why do you think Wall Street banks stopped loaning to one another last September?
"The Fed’s emergency repo loans outstanding last year hit a peak of $236.6 billion on December 18, 2019 — $100 billion more than during the worst financial crisis since the Great Depression."
In December, our banks had $1.5 trillion in excess reserves
Why do you think Wall Street banks stopped loaning to one another last September?
They found it was easier to meet their liquidity requirements by holding onto their excess reserve balances, rather than lending them out for a tiny bit higher interest rate.