RE:RE:RE:RE:Fed to backstop SVB AND Signaturecampst wrote: Maybe i don't understand the Fed, but is the loaned money not printed? If not, why am I reading that this program is a new form of QE?
It's only 1 year loans. The Fed isn't loaning the money for free, so the banks have a good incentive to repay it asap if they use it (ie: shore up their capital, sell assets and repay the Fed). Due to this, it will likely only be used when large withdrawals can't be met, and overall large withdrawals are likely just change of bank, where will the money go otherwise?