☆ Yσɠƚԋσʂ ☆@lemmy.mlM to United States | News & Politics@lemmy.mlEnglish · 10 months agoThe $34 trillion mountain of national debt is a 'boiling frog' situation for the US economy, JPMorgan warnswww.businessinsider.comexternal-linkmessage-square23fedilinkarrow-up118arrow-down113
arrow-up15arrow-down1external-linkThe $34 trillion mountain of national debt is a 'boiling frog' situation for the US economy, JPMorgan warnswww.businessinsider.com☆ Yσɠƚԋσʂ ☆@lemmy.mlM to United States | News & Politics@lemmy.mlEnglish · 10 months agomessage-square23fedilink
minus-squaredavel [he/him]@lemmy.mllinkfedilinkEnglisharrow-up1arrow-down1·edit-210 months agoMy understanding is that the government knows these banks are insolvent from underwater bonds, and quantitative easing is how they’re trying to keep that swept under the rug. It’s some hat trick around the bonds’ values. The bonds are underwater as a direct result of the Fed raising rates, and they knew, or should have known, that this would happen.
minus-squaredavel [he/him]@lemmy.mllinkfedilinkEnglisharrow-up1arrow-down1·10 months agoI think this is the QE hat trick currently in play to rescue banks: https://longviewfa.com/how-the-banking-failures-unfolded/ A new facility that was enacted by the Treasury will provide help to these banks by allowing them to place these underwater bonds at the Federal Reserve at full price.
My understanding is that the government knows these banks are insolvent from underwater bonds, and quantitative easing is how they’re trying to keep that swept under the rug. It’s some hat trick around the bonds’ values.
The bonds are underwater as a direct result of the Fed raising rates, and they knew, or should have known, that this would happen.
I think this is the QE hat trick currently in play to rescue banks: https://longviewfa.com/how-the-banking-failures-unfolded/