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120: Why Are These Market Events Different From 2008?

The Bid

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The Fed's Toolkit for Financial Institutions

Despite this being different and despite all the tools at their disposal, this will have ripple effects for the economy in the US and in Europe actually. And why is that when we're in this different situation? Well, firstly in the US, regional banks are still under pressure and they'll be under pressure for two reasons. The loan offices at these banks won't be extending lots of credit now. That means for the economy as a whole, a tightening in credit supply means less credit available. Now that's going to have an economic effect. It's going to tighten financial conditions for businesses and households. But I go back to this point that the ripple effects here are really the effects of the

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