SLP398 Ansel Lindner - Is it Inflation or Deflation?
Stephan Livera Podcast
00:00
Limits on Lending for Commercial Banks
Banks are constantly in the ripo market, sourcing cash and lending collateral. Their credit worthiness is a limit to how much they can expand their balance sheet. Everything is interwoven and dependent on each other in the inter bank system. So that' that's the problem. When we have a financial crisis, a deflationary shock in the system, it can all go down.
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