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RE: FED Pumping $$$ Into Banks...

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@taskmaster4450le
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This means all type of US lending that starts right now would be at least 3% from the federal government.

Actually this isnt correct. The Fed Funds rate is a weighted average of the different rates that banks use to lend to each other. It has nothing to do with the Federal Government.

So you are saying the Fed is giving the banks a great deal by offering 3% through Repo?

Yet the commercial bank can get a 10 year yielding over 3.6% right now. Hell they can get 3.2% on a 3 month t-bill.

The volume in the reverse repo market has nothing to do with return. Over the last few months, the market has bid the securities up, especially the short term ones.

There is a lot more to the system then what you promote here.

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