Danielle DiMartino Booth: A Banking Panic Makes The Fed’s Job More Difficult
Forward Guidance
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Is the Liquidity Phase Coming to an End?
This is going to be very hard for the banks. Both because of increased FDIC payments to bail out their other folks in the banking sector, but also because banks will have to pay more for deposits. Even if they could make demand, a lot of people and companies are going to batten down the hatches and not borrow as much as they would otherwise. To see a good bank go away is not a good thing.
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