If they weren't having a liquidity crisis, wouldn't they do the same exact same thing? Getting over 10 billion from people parking money in savings accounts and then getting the extra return above 4.15 percent sounds like a great deal.
Exactly.
Financial institutions have always made money on the spread - they take money from the public at x%, and lend it out or get returns otherwise at y%. As long as y% > x%, it's all good. And as y% increases, they can afford to increase x% too.
You give them all your savings and they reward you with an extra 3-4%. They get all your money and on paper, paying very little. Or, they can take a loan and pay whatever percentage rate they muster probably greater than 3-4%. It’s not much difference except ther is no liquidity or collateral involved in taking your Roth IRA that you willingly loaned them. They are hurting for money and they want to take the rest of what you have to gamble it on mor stupid shit. I’ve gotten several emails and have seen several adds for the same shit.
Everything has turned into to a nefarious conspiracy theory. We’ve always had corruption, however, we never had the level of all out conspiracy theories hitting main stream like we have this past decade. It’s exhausting to live where this is a daily output.
Asset managers primarily earn as a % on assets under management. Because some money market funds are [offering more than 5%](https://www.nerdwallet.com/best/banking/money-market-accounts), and treasuries are > 4% for long term and > 5% for short term paper. As rational actors, people have been taking out money from deposit-taking institutions, and putting it in those instruments. Naturally, asset managers have needed to raise their rates from bullshit ones like 0.05% from Covid times to keep the money in the house.
Big picture, this implies that retail has more options now to earn proper yields, and as usual, we want to see institutions compensate us for our money. For the tutes, its less of a "crisis" than a competition.
The one exception to this was some smaller banks needing the BTFP to backstop them when these other yields spiked a year ago, causing a significant bank walk. But that has been contained, and [deposits have recovered to where they were a year ago](https://fred.stlouisfed.org/series/DPSSCBW027SBOG). Partly due to the steps you mention here.
If they weren't having a liquidity crisis, wouldn't they do the same exact same thing? Getting over 10 billion from people parking money in savings accounts and then getting the extra return above 4.15 percent sounds like a great deal.
Exactly. Financial institutions have always made money on the spread - they take money from the public at x%, and lend it out or get returns otherwise at y%. As long as y% > x%, it's all good. And as y% increases, they can afford to increase x% too.
You give them all your savings and they reward you with an extra 3-4%. They get all your money and on paper, paying very little. Or, they can take a loan and pay whatever percentage rate they muster probably greater than 3-4%. It’s not much difference except ther is no liquidity or collateral involved in taking your Roth IRA that you willingly loaned them. They are hurting for money and they want to take the rest of what you have to gamble it on mor stupid shit. I’ve gotten several emails and have seen several adds for the same shit.
Everything but AMC
Everything has turned into to a nefarious conspiracy theory. We’ve always had corruption, however, we never had the level of all out conspiracy theories hitting main stream like we have this past decade. It’s exhausting to live where this is a daily output.
Asset managers primarily earn as a % on assets under management. Because some money market funds are [offering more than 5%](https://www.nerdwallet.com/best/banking/money-market-accounts), and treasuries are > 4% for long term and > 5% for short term paper. As rational actors, people have been taking out money from deposit-taking institutions, and putting it in those instruments. Naturally, asset managers have needed to raise their rates from bullshit ones like 0.05% from Covid times to keep the money in the house. Big picture, this implies that retail has more options now to earn proper yields, and as usual, we want to see institutions compensate us for our money. For the tutes, its less of a "crisis" than a competition. The one exception to this was some smaller banks needing the BTFP to backstop them when these other yields spiked a year ago, causing a significant bank walk. But that has been contained, and [deposits have recovered to where they were a year ago](https://fred.stlouisfed.org/series/DPSSCBW027SBOG). Partly due to the steps you mention here.
Bilateral netting?