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8 comments:
When you have $400 in savings, as far as you're concerned, there's no banking crisis.
No mention anywhere that Fed lowered the RRR to 0% from 10% in knee jerk reaction to their adjustment of depository reserves to a level less than their own 10% minimum in September 2019…
All these smaller banks don’t have any reserves to immediately transfer for withdrawals…
Have to liquidate govt securities…
MMT: “reserves don’t matter!”
Wrong…
I'm not sympathetic to individual depositors who would have gotten a haircut above 250 grand.
I'm okay with bailing out small businesses who had more than 250K.
I know and have lived by the $250K limit, but why $250K? And why any specific limit?
Moral hazard.
FDIC insurance rates probably considered too high to insure the whole $17T of deposits…
Does anyone know what it costs me (or my bank) to have a $250K account at my bank?
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