pull down to refresh
133 sats \ 1 reply \ @SatsMate 4 Jun \ on: US banks sitting on $517 billion in Unrealized Losses per FDIC econ
The craziest thing about all of this is the reserve requirement is currently 0%.
This is insane, and everything is so fragile right now. Just wait until someone smells smoke, and all the banks will come crashing down!
Reserve being zero doesn't have much to do with this. It's because banks weren't lending anyways and have way more than the reserve requirements.
For a few years many have been saying that the US, like Japan, is having a liquidity trap. Meaning gov policy isn't very effective in boosting money supply.
It's why Japan pumped so much for so long and still barely any inflation
reply