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In reply to @timdaub
3/18/2023
mad0perator.crypto@mad0perator
An unsecured loan from the Fed is always new money as far as I understand it. This may even be illegal actually.
In reply to @mad0perator
3/18/2023
tim 🥝@timdaub
No I thought they take the underwater MBSs and bonds as collateral
In reply to @mad0perator3/18/2023
mad0perator.crypto@mad0perator
Furthermore, the depositors at SVB are getting 100% Foreign banks are eligible for BTFP loans. The Fed can't just sell all the MBS for cash, that would drive those prices down