Ep. 264 Is the Fed Bailing Out the Banks
Bob Murphy Show
00:00
The Fed's Dictum to Lend Freely a Good Collateral
It's not that everybody is spooked, and there's a massive fire sale of treasuries. The price of something that was originally 1,000 dipped down to 620. That's the correct price, textbook, present discount valuation of those cash flows. So I think it is a violation of Badget's dictum to lend freely a good collateral.
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