>be me, bank
>dipshit in White House forces me to charge higher interest on wypipo with good credit
>they're outraged
>said wypipo keep their money in savings, where I have to pay them interest instead of the other way around
>meanwhile, Tyrone defaults on his loan for the third time
>wypipo save up enough to pay for their entire house in cash
>they demand their cash via wire
>tell them we don't have that much in the vault due to 0% reserve policy
>more outrage
>news gets out
>bank runs
>Tyrone defaults a fourth time
>try to sell my shitty 0% treasury bonds to shore up cash
>FDIC forces me to shut down
>Federal Reserve makes money printer goes brrrrr to save me
>finally out of FDIC conservatorship
>keep a shitload of cash reserves to prevent another run
>a whole lot of cash doing nothing
>go out of business because I have no cash flow
>Tyrone forecloses on his house a fifth time
Except everyone is taking money out now. There is a credit and crunch right now. Asset and collateral panic is starting by July/Aug you will see the economy start to unravel.
>be me, bank
>dipshit in White House forces me to charge higher interest on wypipo with good credit
>they're outraged
>said wypipo keep their money in savings, where I have to pay them interest instead of the other way around
>meanwhile, Tyrone defaults on his loan for the third time
>wypipo save up enough to pay for their entire house in cash
>they demand their cash via wire
>tell them we don't have that much in the vault due to 0% reserve policy
>more outrage
>news gets out
>bank runs
>Tyrone defaults a fourth time
>try to sell my shitty 0% treasury bonds to shore up cash
>FDIC forces me to shut down
>Federal Reserve makes money printer goes brrrrr to save me
>finally out of FDIC conservatorship
>keep a shitload of cash reserves to prevent another run
>a whole lot of cash doing nothing
>go out of business because I have no cash flow
>Tyrone forecloses on his house a fifth time
Tyrone living his best life.
You should find a reason to stop lending to Tyrone. Throw the data in some AI black box until he gets rejected!
Except everyone is taking money out now. There is a credit and crunch right now. Asset and collateral panic is starting by July/Aug you will see the economy start to unravel.
I actually think Australia made it near illegal to pay for things such as housing and cars using cash…
This taking care of some of your points.
They’ve thought of this, unfortunately…