A Couple of Articles About the Fed \ stacker news ~econ

1286 sats \ 6 comments \ @Undisciplined 4 Jan econ

The Fed's Bank Term Lending Program Probably Won't Ever Go Away By Doug French

The Fed keeps pushing easy money to banks. Why? Because 14 percent of all commercial real estate bank loans are under water, with 44 percent of loans collateralized by office properties having negative equity.

The Wrong Way and the Right Way to Fix the Fed By Joseph T. Salerno

The proper strategy is to design economic policies that are consistent with the individualist, private-property, free-market institutional framework. Any monetary system in which politics plays a decisive role will be operated according to the ideology of government officials subject to the pressure of public opinion.

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289 sats \ 5 replies \ @grayruby 4 Jan

There is nothing as permanent as a temporary fed intervention.

100 sats \ 4 replies \ @Undisciplined OP 4 Jan

I'm wondering how much they're going to freak out when the inflation turns out to have been transitory after all.

What stupid set of toxic assets will they buy this time? Maybe the Fed will buy up all the unpaid student loans.

289 sats \ 3 replies \ @grayruby 4 Jan

Transitory until they pump another x trillion into the system.

At some point the student loan folks will realize if they all don't pay bailout is the only option.

100 sats \ 2 replies \ @Undisciplined OP 4 Jan

There's an interesting prediction that the government will forgive all those student loans as a means of increasing tax revenue. The idea is that the government will treat the forgiveness as taxable income, which will let them at least get some of it back.

289 sats \ 1 reply \ @grayruby 4 Jan

Hadn't heard that and don't know how it would functionally work. If people can't pay their student loans hard to imagine they have the money for a large lump sum tax payment. Maybe if the taxable income is added over a 10 year span.

0 sats \ 0 replies \ @Undisciplined OP 4 Jan

If there are people who could make their loan payments but are choosing not to, this would work on them, because you can go to jail for not paying taxes.

For people who really can't make a payment, this would reduce the government entitlements they qualify for.