Stock Market Discussion, Chat About the Latest Market Action

[Andreas Thiel]

Has anybody looked into (and thought about) the Bank Term Funding Program: Federal Reserve Board announces it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors?

Do I understand this correctly?
It seems like a pretty sweet deal - not having to put up the "fair" collateral. Won't there be arbitrage opportunities? Won't all banks want to get their hands on these while reassuring customers that it is just a precaution?
It also means liquidity ... so fuel for the inflation fire? They set aside 25 billion (basically nothing, depending on how big this can get) for the case that - after the one year - these loans are in the nagative?

Is there a limit to how big this can get?

 

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[WJK]

Has anybody looked into (and thought about) the Bank Term Funding Program: Federal Reserve Board announces it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors?

Do I understand this correctly?
It seems like a pretty sweet deal - not having to put up the "fair" collateral. Won't there be arbitrage opportunities? Won't all banks want to get their hands on these while reassuring customers that it is just a precaution?
It also means liquidity ... so fuel for the inflation fire? They set aside 25 billion (basically nothing, depending on how big this can get) for the case that - after the one year - these loans are in the nagative?

Is there a limit to how big this can get?

They did the same thing in 2008.

 

[Runum]

Here's a little bit of history for those with a short memory.

Age of Easy Money | FRONTLINE

High inflation, fear of recession and disruptions — like the collapse of Silicon Valley Bank — how did we get here? FRONTLINE examines the Federal Reserve's policies and the potential consequences of its record pace of interest rate hikes to try and fight inflation.

www.pbs.org

 

[socaldude]

Here's a little bit of history for those with a short memory.

Great to see a comment from you Greg.

I think 2023 will a year of epic volatility. Something is finally gonna "give" this year. And I don't think it will be a "soft landing" courtesy of the schmucks that had monetary policy wrong for 12 years.

Who says the Fastlane forum doesn’t know anything about finance and the economy? Not even a week later something interesting happened and we were right.

Looking at the VIX futures, I’ve never seen those contracts move like that this whole week. WOW. Something very important and interesting is gonna happen in July and August. Can you tell, I think I know what it is. Although it might be a 30 day overlap because VIX futures contracts are priced off SPX options that expire 30 days later.

 

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