An Extended Breakdown of the Fed and Banks (Podcast)
Bloomberg Intelligence
00:00
The Fed Really Has Blood on Its Hands
We are staring at a scenario, which is very similar to 1930, where we had the widespread failure of the US banking community. The last time we had benchmarks, four or five points above bank deposit rates, was back in the 80s. That's the difference. I think the Fed is badly missed. They panicked in 2018 with the money market crisis in December. They started dumping reserves in the system the next year, a year before COVID. Look at the index for GiniMai duration. It tells the story. By the time we get to COVID, the duration on $2.2 trillion in Ginimai securities is one, which is almost impossible.
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