Central bank free money doesn't create collateral or creditworthy borrowers, and without those foun | Jellystone Message Board Posts

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Msg  1135618 of 1145584  at  3/31/2020 5:36:38 PM  by

incahoots


 In response to msg 1135615 by  wedgeseeds
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Re: Central bank free money doesn't create collateral or creditworthy borrowers, and without those foundations, the decayed, rotted shack will collapse...eom

Seriously. Why do you need collateral or creditworthy borrowers when you can create money and erase debt like magic? Why does a bank need reserves? Why do you need counterparties. Do you care if you sell off a bunch of seed and your purchaser or the fed puts "money" into your accounts?

Sure it's decayed and rotted, but will it collapse? I still have trouble visualizing why that would happen if the fed backstops absolutely everything. As I pointed out yesterday, even the federal debt has virtually stopped going up. Does anyone (other than me) notice or care?

imo



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