/biz/ - Business & Finance

The fed effectively just cut rates to 0% overnight by backstopping banks. Think about it:
>bank buys $99 bond for a 1% yield, you plan on getting $100 at maturity
>fed raises rates from 1% to 5%
>bank needs to raise money, sells bond portfolio, but bond prices are $95 with a 5% yield which gives you $100 at maturity
>bank sells bond at a $4 loss, but fed "backstops" these loses, giving the bank $4 to make up the difference and keep the bank solvent.
>so to summarize, the bank buys at $99 and sells at $99 (zero interest rates).
stock futures are flying now that people realize this

Why do fudders exist? What incentive is there to keep the price of a coin down?

>>15708949
>pink ID

>>13747384
I hope your position gets better in the future.

>>13409866
Everyone deserves to have their property rights defended - both rich and poor.

Is 33 ChainLink enough to make it? Been watching these thread since day one. Just bought in, what am I in for?

>>11642222
Checked

>>999845
>February 23rd

What's the outlook for the oil markets right now?
Is it worth going long?