5min chapter

The Café Bitcoin Podcast cover image

"The Implications of Open Monetary and Information Networks" with Lyn Alden - March 27th, 2023

The Café Bitcoin Podcast

CHAPTER

The BTFP Bailouts for Banks

The BTFP basically bailouts for these banks. This seems to me just a way to kind of obfuscate and keep secret any banks that are failing to prevent runs. It is better if they gave the info, but it's also an indication of weakness. They're not going to bail them out unless there's something systemic or contagious. The government just handed out cash and made the big banks all take it even if they didn't need it because they didn't want to single out like the other banks as being particularly weak. I mean, on one hand, we don't want everything to just come crashing down right now because it's going to be really awful for a lot of people.

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