How will banks survive deep NIRP?

Thanks, I'd never heard of that. I looked it up.

 

Just wait for the first big bank to go under the current bailouts prohibition to see how useful the FDIC turns out to be.

 

The FDIC can only technically run out of money, they can't actually run out of money. You are aware of that?

 

If they are given more tax money, how will it be different from a bailout then?

 

They won't be given money, they will borrow what they need if they are short and pay it back via increased insurance premiums that banks pay to the FDIC. I guess you are aware that the Tarp account is on track to return a net profit to the Treasury and thus to the taxpayer. https://www.treasury.gov/initiative...s/bank-investment-programs/Pages/default.aspx

 

No one has any money nor is given any, everyone borrows. I've heard this somewhere.

 

You simply don't understand their power to create tools and their power to render time meaningless.
http://www.zerohedge.com/news/2016-...draghi-plans-fool-proof-ecb-backed-debit-card

 

If they are so omnipotent, why didn't ZIRP work out for them, so they now contemplate NIRP?

 

Yes, well done! It only took an expanded Federal Reserve balance sheet of approximately $4 Trillion (so far) to do it, too!

 

That's correct. TARP does not account for the entire amount of balance sheet expansion, but it is part of it. That is a point I have tried to make here many, many times, and thankfully it seems to be sinking in with those who foolishly maintain that QE accomplished nothing. Nothing could, in fact, be further from the truth. Through QE, Treasury was able to very quickly raise many billions without putting upward pressure on rates. And that money, raised in this way, is the lowest cost money we tax payers can raise! Now that Tarp is winding down, Treasury will coordinate with The Fed in reducing, albeit slowly so as not to cause disruptions, the balance sheet. There are many traders who still think QE is exactly the same as printing and simply do not understand Central Bank operations. And who could blame them, because it is rather complex. But the main point is that money created via QE is all tied to debt, and this is a reversible process. When it is properly managed, it can be extremely helpful in ameliorating the effect of a crisis. Hats off to the U.S. Treasury and the Federal Reserve for a magnificent job in handling what otherwise would have become a dreadful crisis; a crisis, I'm sorry to say, largely of the Fed's own making.