PhD | Founder at AllianceBlock | Partner at the 200 Bn Club | Meta Economist | Participative Capitalist |
Mar 21, 2023 • 17 tweets • 7 min read
1/17-💭What we're facing is a #TRUST crisis rather than a #BalanceSheet crisis. There’s been a lot of amalgamation between #BTFP and #QE, but they are different, and their consequences will be different as well. My thoughts 👇 #CreditSuisseBankruptcy#BankingCrisis#AllianceBlock
2/17- 🏦 #BTFP (1):
- Involves banks depositing HTM bonds and AFS securities at the Fed as collateral against borrowing the At Par Value for 1 year
- Funds are likely to be used for immediate liquidity needs, backstopping bank runs and making depositors whole