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/biz/ - Business & Finance

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17872456 No.17872456 [Reply] [Original] [archived.moe]


the economy is a fucking joke

>> No.17872507

wait till we get negative interests rate
that's gonna be fun

>> No.17872528


(((but it was real in my mind!)))

>> No.17872535

It's unfortunate the media is so busy with all of the coronavirus news, such a monumental shift in the foundation of how global commerce is financed could have benefitted from having more light in the public discourse before being enacted. But these things can't be foreseen. Nature has dealt us a nasty hand and the story that was more interesting to the public won out. I'm sure the Fed knows what they're doing, they're experts.

>> No.17872556

it's in there... last paragraph

>> No.17872563
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>>fractional reserve banking
>>reserve requirements are effectively zero percent

I bet that restores confidence in the markets!

>> No.17872574

How can we profit from this? It's not like we can borrow money from the bank from 0% interest. And keeping cash is just a loss.

>> No.17872588

I doubt you will ever see negative interest rates consumer side. Checking accounts for example can be negative interest under the hood currently but banks get around this by charging fees instead.

>> No.17872597

yes surely the experts at the fed know exactly what they are doing

>> No.17872601

still, the economy is a joke, how can people still give value to us dollars at this point?

Lets just open a bank guys,
>deposit zero dollars in our bank
>now we can "loan" ourselves infinite money at zero interest rate, first payment in 2100

>> No.17872613

Value of cash goes and stock market should go up. Profit comes from buying index funds and foreign currencies. So the exact opposite of yesterday. Like it or not the FED is devaluing the dollar as lowering the interest rate literally does this, so you may as well go along with it.

>> No.17872621

interest rates are negative 3% inflation 0% rates = -3%

that's if you think cpi measures inflation

>> No.17872625

we should open a /biz/ bank and loan ourselves a few trillion, buy the entire us stock market.

Since opening a bank is hard we ahould just buy an existing small bank as step 1. Them we can buy the entire global economy.

>> No.17872636

it restores confidence that number go up

>> No.17872657

Explicitly ruled out. They'll go with forward guidance and increasingly comical ginormous rounds of QE.

What benefit would you see from a population that is half double-digit IQs getting "more light in the public discourse"?

What wise enlightenment could we gleam from those janitors and schoolteachers and fry cooks if only we'd asked?

Or perhaps the right side of the bell curve could be more helpful? Doctors with 5 minutes to skim the WSJ before their 12 hour shift or middle managers who haven't used an ounce of brainpower since they earned that six sigma black belt 15 years ago. Truly they could crack the mysteries of well-guided interest rate policy.

>> No.17872659

Nothingburger. Doesn't matter how low the requirement is if banks aren't lending anyway. Since 2009 excess reserves increased so much that at times the average reserve ratio was well over 100%. I don't know where reserves are at right now, but I'm sure it's nowhere near 0%.

>> No.17872664

Tl/dr go long on eur and number go up and make money?

>> No.17872704


They lower the requirement so banks have an extra amount of liquidity they can use (your deposits) to prop themselves up.

>> No.17872731

Can you explain how excess reserves work ? AFAIK the Fed holds the actual reserves to back the fractional reserve banking system as well as collateral for any new units of currency they had printed. Profits less payouts to stockholders of the fed itself goes into the US treasury. How does excessive reserves get treated in the fed's balance sheet / day to day operations ?

>> No.17872754

Pretty much what I've been doing since 2008. This means I will need to get a job again so I can throw $4000/month into index funds.....
How can I profit from this without getting a job?

>> No.17872792

Doesn't this effectively mean the dollar is worth nothing?

>> No.17872839

I assume this isn't the liquidity coverage ratio, i wonder if they will change the LCR to give banks a break and make the overnight repo ops more effective.

>> No.17872861

No, it means if the resultant increase in money supply outstrips demand there will be inflation, each unit of US dollars will be worth less than it was before.

>> No.17872899

As far as I understand it, when the Fed creates money it buys securities from banks and pays for them by adding reserves to the banks' accounts at the Fed (open market purchase). These reserves are liabilities for the central bank, just like how our deposits at chartered banks are liabilities for them. The reserves are assets for the individual banks and the Fed pays interest on them, because again, they are basically deposits at the central bank. Individual banks can then lend these reserves out or not if they're too scared.

>> No.17872937

But that's the point. The FED causes a massive panic, people liquidate everything they own in to dollars, then the FED destroys the dollar and their friends come in and buy everything up.

>> No.17872967

They did this because all the banks are broke. If they kick the can down the road further I’ll be truly amazed.

>> No.17873005

Oh I see, I always thought the interest rate decrease was just due to lack of available money in general, hence excessive reserves would be near zero. But in actuality excessive reserves will still be held as interest rates fall if the federal reserve member bank thinks its too risky to do anything else with the money.

>> No.17873009

just went to get money from bank, only 20s left, could only et 1000, cop on premises (why, never before?).

physical cash might be scare in a bit..

>> No.17873049

holy BASED Fed

>> No.17873106

lmao is trump really going to use the fed to kill the fed

>> No.17873117

The required reserve ratio is not that important. In Canada there is no legally mandated minimum reserve ratio and the Canadian banking system is seen as very strong. Banks will not lend 100% of their reserves just because they are allowed to. They want to stay in business.

>> No.17873145

I've been saying this all over for years now, the US Dollar has lost 98.5% of its value since 1913

>> No.17873175

In times of uncertainty in the US rich people typically withdraw as much cash as they can from the bank. For example during the downturn in 08 finance guys would be telling their wives to go to the atm and withdraw the max limits while they are at work. I am sure with all this uncertainty withdrawals are up.

>> No.17873214

There’s a USD shortage idiot. Look at what happened to the USD in 2008... yeah I’m gonna double my stack of linkies because of this

>> No.17873233

But they can during a panic. I mean this is the exact sort of situation where you would want a limit.

>> No.17873249
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>> No.17873283

Canada still has capital requirements for banks though.

For example there is:
-Liquidity Coverage Ratio
-net stable funding ratio
-Net Cumulative Cash Flow

>> No.17873314

If anything they'd be more likely to stop lending in a panic. Just look at how they've clammed up since the last financial crisis (https://fred.stlouisfed.org/series/EXCSRESNS). All those reserves and no lending because they're scared.

>> No.17873317

doesn't this allow them to loan literally infinite money into existence? USD will become zimbabwe tier?

>> No.17873377

No quit falling for that Jew he’s the reason you’re about to be hungry

>> No.17873397

>fictional reserve banking

>> No.17873434

This anon gets it. This is why it's a deflationary shitshow first before hyperinflation.. To shake people so badly that they flee out of value into fiat so there is more value to INFLATE AWAY FROM YOU.

>> No.17873460

You have to ask yourself, do the banks still want to be in business. They have created a situation where they can borrow infinite amounts of money, get bailed out by the Fed, buy whatever they want and get golden parachutes when their Bank fails like they did in 2008. I mean you've got the perfect storm right now for the complete annihilation of the dollar.

>> No.17873463

Here in Argentina we can't get usd on atms and there are capital controls so freelancers have been going to uruguay through ferry to get usds.

And atms are literally out of usd most of the week now.
Shit's going bad fast.

>> No.17873510

so your currency shit the be so bad that you started using USD and now it's systematically fucked as well?

>> No.17873525

Yeah they can use the excuse there's a shortage of dollars. They just want to save the country! Of course this is all theoretical but you could see a sudden surge the markets tomorrow as insiders start buying up all the great deals. Wile everybody else has left holding nothing but their dicks and wiping their ass with worthless scraps of green paper.

>> No.17873582

Sounds like Crypto and PM are coming to save the day!

>> No.17873712
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>day old news
Boomer go

>> No.17873713

Wew lad

>> No.17873766

It's over, the clowns have won.

>> No.17873801

The Tachyon Protocol does not have any hard requirements for the client node in order to provide a smooth user experience

>> No.17873838

Ya.. I mean you really won't want the dollar anymore anyway it's going to be just like your peso soon enough. Can you use crypto? They are testing the reserve app there but I doubt it's useful to you in real life.

>> No.17873866

still not buying your real estate bags boomie

>> No.17873892

I want to do this. How do I do this?

>> No.17874105

what do their friends have their money in then?

>> No.17874262

Fuck off mnuchin

>> No.17874328

Well currently they have cash because they sold first while the market was overvalued. Now they're just sitting waiting for the good ol boys club to give them the heads up when to buy back in. Of course I don't know if this is actually what's happening but they have certainly stack the deck so it can happen. But I do know I don't trust the dollar I would rather lose temporary value then to be screwed in the long term.

>> No.17874413

> negative lending rates
> 0% reserve requirement (Fed is covering reserves? Idk)
> Paying banks to take INFINITY MONEY
> Fractional reserve banking with no fractional reserve

Serious question, how long until hyperinflation hit in Zimbabwe / Argentina? The fed will print and give out trillions until they literally cant anymore. Combine that with a supply AND demand crunch because of corona and we're in magic land.

>> No.17874419
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Can someone explain why the fed blew their load so early?

Shouldn't they use these tools more gradually as the economy softens? Instead of using throwing everything at the problem right away and beeing all out of ammo?

You can say what you want about Ben Bernanke and Hank Paulson but they handled 2008 a lot fucking better than this.

>> No.17874461

>you've got the perfect storm right now for the complete annihilation of the dollar.
Only way it could've been better is if Bernie actually had a shot of being elected and enacted 100 trillion in deficit spending or whatever the fuck he is promising..

Would literally be Zimbabwe tier inflation.

>> No.17874512

Unironically because Trump pushed for a crack monkey Fed chair.
Not gonna get into his other economic blah blah blah (I'm not American and have no direct stake in this), but Trump continued pushing for horrendous Obama era macroeconomic policies and accelerated them.

Had the interest rates been at 5% and the balance sheet been slimmed down to maybe 20 billion this entire mess would've been significantly less of a complete shitshow.

>> No.17874555

Hmm this anon puts forth a good consensus chaps. Dare I say we start our own bank as a group, get as many loans as we can, and drop it all on BTC. Cash out a few months later after we effectively ramped up the price. Give ourselves a pat on the back and shut the bank down.

>> No.17874566

Also curious as i have been unemployed for a while and unable to get a job. suspect itll be even harder to get a job now.

>> No.17874589


>> No.17874616

every thread i will repeat myself until you retards get it. the kikes will do everything to keep the country afloat. Im 99% sure that we will see the economy recover 100%+ when the panic is over. screen cap this post. ill give you $50 worth of chainlink if i am wrong

>> No.17874633

This place (the USA) is a process to get the world setup for total control. You're right, they wont let their bread and butter fall until it has served its purpose.

>> No.17874650

What if they can't control it?

>> No.17874657

>Explicitly ruled out. They'll go with forward guidance and increasingly comical ginormous rounds of QE

The usa can't go negative rates without losing the reserve currency, the eurozone on the other hand.....

>> No.17874663

They can and will.

>> No.17874679

>yeah bro we'll just print fake money and prove this economy is a joke and no one will notice
you could be right, ignorance is bliss

>> No.17874680

Yes, that's a correct view of the situation, and the lack of usd cash in Uruguay does not help and now with the quarantine it's even worse.

>> No.17874703

You don't think people don't know this already? Such a low IQ faggot

>> No.17874723

>you don't think people don't know it's fake already and see it in real time crash in front of their very eyes how fake it is
the economy is fake

all that matters is if the police can handle the riots

>> No.17874758

Grocery stores and delivery jobs are in much need, just walk in and you are set

>> No.17874781

you keep being wishful while I sit in reality and see the world for what it is. Hope you bought the dips at some point cause you are gonna lose a fuckload of money.

>> No.17874791
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excuse me FAKE money

>> No.17874805

if it weren't for him the US would be two years into a huge deflationary period. remember when they raised the rates in 2018?

>> No.17874824

Imagine the inflation rate

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