They are buying debt at par with 100% margin. They are creating money. If I have a collateral trading at $1 they will give me $2 for it
this is exactly the issue with everyone discussing online. I donāt understand enough. If e.g. the FDIC had a budget in line with how many deposits are insured, then they could take that money and redistribute it to make depositors whole. Is this the case? I donāt know