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n. Illinois | but you know the Fed has failed every time as the lender of the last resort role.
They didn't bail out the banks in the 1930's even though that was their primary reason to be set up in 1913. They actually constricted the money supply in the 1930's making a recission a depression.
They didn't do it again in 2023 when SVB failed because of a deposit run. The SF Fed knew that they had this massive bond portfolio of 30 yr T-bills and did nothing to help them. SVB had the t-bills to pledge and yet the SF Fed did nothing until it was too late to save SVB. It's like your house is on fire. you call the Fire dept and they respond that it will take 2 weeks to process the paperwork before they can arrive.
After SVB failed our CEO told the CFO to find out what it would take to be able to access the Fed for overnight borrowings and it took over 2 weeks for the paperwork, Talk about the Fed being lender of last resort. what a massive lie. | |
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How money is created
