This is absolutely a bail out. SVB's collateral (treasuries) were repurchased at par (full value) by government when they were worth $0.60 on the dollar. Who is paying for that $0.40 on the dollar difference? Taxpayers.
This is absolutely a bail out. SVB's collateral (treasuries) were repurchased at par (full value) by government when they were worth $0.60 on the dollar. Who is paying for that $0.40 on the dollar difference? Taxpayers.
The Fed will hold them on their balance sheet to maturity and there will not be a loss.
The taxpayers do not fund the money that the Fed uses to purchase assets. It is fake printed money.
Not doing this would have resulted in the elimination of every regional bank which would have expedited Democrat tyranny which is why I’m surprised they didn’t let it happen.
For the most part, that's true, but we still had inflation when the money was printed and started chasing stonks. Just because the prices of chicken aren't rising doesn't mean there isn't inflation. It's just somewhere else in the economy.
This is absolutely a bail out. SVB's collateral (treasuries) were repurchased at par (full value) by government when they were worth $0.60 on the dollar. Who is paying for that $0.40 on the dollar difference? Taxpayers.
The Fed will hold them on their balance sheet to maturity and there will not be a loss.
The taxpayers do not fund the money that the Fed uses to purchase assets. It is fake printed money.
Not doing this would have resulted in the elimination of every regional bank which would have expedited Democrat tyranny which is why I’m surprised they didn’t let it happen.
Exactly.
As long as the money you are printing isn’t given to people who will use it to buy chicken then you won’t have inflation.
We didn’t have inflation after the money printing in 2009 because Goldman Sachs didn’t use the money to buy chicken.
For the most part, that's true, but we still had inflation when the money was printed and started chasing stonks. Just because the prices of chicken aren't rising doesn't mean there isn't inflation. It's just somewhere else in the economy.
Oh yeah I know but a rise in the price of Snowflake and fancy watches does not destabilize society the way $15 bread does.