The Fed has Eliminated Reserve Requirements for All Depository Institutions

Discussion in 'Economics' started by gaussian, May 25, 2020.

  1. gaussian

    gaussian

    Spooz Top 2 likes this.
  2. 931

    931

    Does it mean inflation increase?
     
  3. Here4money

    Here4money

    explain this to me like I'm dumb. What's the impact?
     
    Turveyd likes this.
  4. gaussian

    gaussian

    Banks can lend up their asset limit. No cash (margin) is required on hand for loans. Which means the money in your bank account isn't yours when you grab it. Remember the great depression bank runs? Those had a 10% depository reserve requirement IIRC and they still got crushed.
     
    VPhantom and Here4money like this.
  5. Here4money

    Here4money

    time to move it all to broker then
     
  6. Turveyd

    Turveyd

    Time to take it out put some under your bed and bury some in your back yard sealed in plastic bags.

    On a scale of 1 to 10 how ugly could this get ??
     
    schizo and Tradex like this.
  7. RedDuke

    RedDuke

    Wow, just wow
     
  8. Atikon

    Atikon

    If you go QE unlimited might aswell do no reserve required. Who are you going to lend money in this enviroment? Tomorrow is going to be an interesting day, one for the ages.
     
  9. schizo

    schizo

    TooEffingOld likes this.
  10. RedDuke

    RedDuke

    Why tomorrow? Apparently this is old news, and was done right around March lows. Can it explain a rally?
     
    #10     May 25, 2020
    zdreg likes this.