>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
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.