Omid Malekan (Columbia) on Trust & Finance
Galaxy Brains
00:00
Is the Financial System No Longer Reset?
The Fed has announced a facility where the banks could go and borrow money against that debt at par. So effectively, they've guaranteed all bank deposits because in the bigger banks, everybody is too big to fail. It's almost like the threshold by which everything breaks down just goes higher and higher. And it'll be interesting to see how big it gets because I wouldn't be surprised if there are some people out there who don't even have the impairment issue, but they're like, oh, I can borrow at par for something worth 80 cents.
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