Banking Stress is Back Again
Real Vision: Finance & Investing
00:00
The Fed and the Lehman Crisis
Larry McDonald: The Lehman crisis created a backdrop that is in some ways helping money move into money market funds, which were backstopped by the Fed during the crisis. He says if the longer the Fed keeps the Fed funds rate near 5%, they will drain the banking system dry. "I think they probably cut rates by 100 bits by this time next year," he says.
Play episode from 25:26
Transcript
