How accelerating bank deposit withdrawals could harm the economy, including real estate prices. How dollars slosh around the financial system but always seem to end up at the Federal Reserve. Topics covered include: Show Notes Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks—The Federal Reserve Assets and Liabilities of Commercial Banks in the United States—The Federal Reserve All U.S. Banks Net Interest … [Read more...]
270: Repo Rates Soared—Here’s Why It Matters
How a liquidity crunch in the short-term lending markets sent interest rates soaring. Why this is a huge blunder on the part of the Federal Reserve, and what it means for us as individual investors. In this episode you’ll learn: Show Notes New York Fed injects $66bn into short-term lending markets by Joe Rennison—Financial Times Repo and Reverse Repo Agreements—Federal Reserve Bank of New York Repo Rate Spike: A ‘Tail’ Of Low Liquidity by Jerome M. Schneider, William … [Read more...]
199: What Kind of Money Is It?
How a bank panic led to the creation of the Federal Reserve, and why having diversified sources of money can protect us in case we have a bank panic today and can't get access to our bank deposits. In this episode you’ll learn: How a bank panic and economic crisis in 1907 led to the creation of the U.S. Federal Reserve in 1913.How U.S. currency evolved after the establishment of the Federal Reserve.How currency, bank deposits, gold and Bitcoin differ in terms of their … [Read more...]
163 Plus: Federal Reserve, Pension Crisis and Is There Enough To Retire
This week July 1, 2017 on Money For the Rest of Us Plus we learn how bank reserves at the U.S. Federal Reserve will be reduced as the central bank reduces its holdings of U.S Government bonds. We use the tools on Money For the Rest of Us Plus to analyze whether a member will have enough to retire. We explore the severity of pension fund crisis for U.S. states and municipalities as well as for U.S. businesses and the potential fallout from the crisis. Finally, we take a brief look at a … [Read more...]
